Assume the rate of inflation is 8% per year for the next 2 years. What will be the cost of goods 2 years from now, adjusted fo

Question

2 years ago

10

r inflation, if the goods cost $280.00 today?

1 answer:

Paha777 [63] · Answer 1 · 2022-06-10T08:15:08+03:00

8 0

<h3>Answer: $326.59</h3>

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Work Shown:

F = future value

P = present value = 280

r = rate of inflation in decimal form = 0.08

t = elapsed time in years = 2

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F = P*(1+r)^t

F = 280*(1+0.08)^2

F = 326.592

F = 326.59

Assume the rate of inflation is ​8% per year for the next 2 years. What will be the cost of goods 2 years from​ now, adjusted fo