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MakcuM [25]
3 years ago
10

Between 1998 and 2018, inflation for prices of goods and services has been about 51%. Suppose a salon charged $18 for a basic ha

ircut in 1998 and has been raising prices by a steady percentage each year to keep up with inflation.

Mathematics
1 answer:
Anestetic [448]3 years ago
5 0

Answer: $22.12

Step-by-step explanation:

I just did the compound interest formula which is

starting amount * (1. interst rate) ^ number of years

example if you have 100$ and you want to know how much it is worth if it appretiates by 7% of a period of 20 years it would look something like this;

100 * (1.10) ^20 = 672.74$

but since you have to figure out what it was in 2008 which was exactly half way in the period you divide the exponent by half so your formula should be;

I know the answer is right because I asked my teacher and it's correct.

REAL EXAMPLE: 18 * (1.51) ^.5 = 22.12$

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