Answer:
The price of milk in 5 years = $7.16
Step-by-step explanation:
Given:
Present cost of half-gallon carton milk = $4.45
Increase percentage = 10%
To find the price of milk in 5 years.
Solution:
To find the price of milk in 5 years we will apply the exponential growth formula which is given as:
where
final value
present value
rate of increase in decimals
time in years.
From the given data, we can plugin values in the equation to calculate final value in dollars after 5 years.
Thus, price of milk in 5 years = $7.16