Question

A half-gallon carton of organic

Answer 1

Answer:

$7.17

Step-by-step explanation:

(1 year) 4.45 x .01= .45    $4.45 + .45=$4.90

(2 year)4.90 x .01= .49 $4.90+.49=$5.39

(3 year)$5.39 x .01=.54 $5.39+.54=$5.93

(4 year) $5.93 x .01=.59 $5.93+.59=$6.52

(5 year) $6.52 x .01=.65 $6.52+.65=$7.17

Answer 2

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:

$F_v=P_v(1+r)^t$

where

$F_v\rightarrow$ final value

$P_v\rightarrow$ present value

$r\rightarrow$ rate of increase in decimals

$t\rightarrow$ time in years.

From the given data, we can plugin values in the equation to calculate final value in dollars after 5 years.

$F_v=4.45(1+0.1)^5$

$F_v=4.45(1.1)^5$

$F_v=4.45(1.61)$

$F_v=7.16$

Thus, price of milk in 5 years = $7.16