Question 1100351
shoes cost 110 in 2004.
same shoes cost 130 in 2009.


2009 - 2004 = 5
130 = 110 * (1 + r) ^ 5
divide both sides of the equation by 110 to get:
130/110 = (1 + r) ^ 5
take the fifth root of both sides of the equation to get:
(130/110)^(1/5) = 1 + r
solve for r to get:
r = (130/110)^(1/5) - 1 = .033975227


that's your average annual exponential growth rate of inflation.


in 2009, at the present rate of inflation from 2004, the shoes will cost 110 * (1.033975227) ^ 5 = 130.


in 2016, at the present rate of inflation from 2004, the shoes will cost (110 * (1.033975227) ^ 12 = 164.2533691


2009 is 5 years from 2004.
2016 is 12 years from 2004.


graphically, the equation looks like this:


<img src = "http://theo.x10hosting.com/2017/110601.jpg" alt="$$$" >