MATH SOLVE

3 months ago

Q:
# If a dozen eggs cost $3.50 now, they’ll cost how much in 25 years based on inflation

Accepted Solution

A:

Based on the average inflation rate of 3.22%, the new price of a dozen eggs after 25 years follows the equation: F = P(1+r)^t, where F = future value, P = present value, r = rate of inflation, and t = time in years

F = ($3.50)(1.0322)^25 = $7.73

F = ($3.50)(1.0322)^25 = $7.73