When the average price of an item increases from p1 to p2 over a period of n years, the annual rate of inflation r (in decimal f
orm) is given by r=(p2p1)1/n−1. The average price of one pound of cheese increased from $0.22 in 1913 to $5.83 in 2013. What was the annual rate of inflation r? Write your answer in decimal form to the nearest thousandth.
This is in slope-intercept form, so you can think of it as being y=mx+b. Invert m (the slope) and flip its sign, and then substitute the x and y values in and solve for b. The answer is y=7/2x-20.
