Question 1198085
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Given the inflation model C(t)=C0(1+r)t and given that a can of soup that currently sells 
for $1.18 sold for $0.90 3 years ago, what has the average annual rate of inflation been 
for the past 3 years? Round to two decimal places.
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<pre>
From the problem,

    1.18 = {{{0.9*(1+r)^3}}},    (1)


and they want you find the rate "r".  From (1)

    {{{1.18/0.9}}} = {{{(1+r)^3}}}

    1.31111111 = {{{(1+r)^3}}}

    1 + r = {{{root(3,1.31111111)}}} = 1.094493448.


Hence,  r = 1.094493448 - 1 = 0.094493448...


Round as you need . . . 
</pre>

Solved.