Question

During the worst periods of hyperinflation in a certain country, the price of food increased at a rate of 30% per month. State whether this increase was linear or exponential. If your food bill was $130 in one month during this period, what was it three months later?​

Answer 1

Answer:

It was an exponential increase

In 3 months, the bill will be $285.61

Step-by-step explanation:

First, this scenario is exponential, because the price of food is increasing with a percentage, based on the price that it was the previous amount.

Next, to find what the bill will be in 3 months, an equation needs to be made representing the situation.

Use the standard exponential equation: y = ab^x, where a is the initial amount, b is the growth rate, and x is the amount of time.

Plug in the values we know:

y = 130(1.3)^3

Solve for y

y = 285.61

So, 3 months later, the bill will be $285.61