Question

The average price of a gallon of milk is $3.31. If the price increases .88% each year , how much will a gallon of milk cost in 20 years?

Answer 1

Answer:

$3.94

Step-by-step explanation:

You will need to use the compound interest formula for this.

$P(1+\frac{r}{n} )^{nt}$

P = initial balance

r = interest rate

n = number of times compounded annually

t = time

Your equation will look like this:

$3.31(1+\frac{.0088}{1} )^{20}$ = 3.94