Answer:
<u>The cost two years ago = $11.57</u>
Step-by-step explanation:
The rest of the question is
what did a pound of gourmet coffee beans cost two years ago?
So, let the cost two years ago = x
The cost has increased 10% per year
so, the cost one year ago = x + 10% of x = x + 0.1 x = 1.1 x
So, the current cost = 1.1 x + 10% of 1.1 x = 1.1 x + 0.1 * 1.1 x = 1.21 x
But given the current cost = $14
∴ 1.21 x = 14
∴ x = 14/1.21 = 11.57
So, <u>the cost two years ago = $11.57</u>
