Posted by **Taylor** on Wednesday, March 31, 2010 at 5:38pm.

When inflation causes the price of an item to increase the new cost C and the original cost c are related by the formula C=c(1+r)^n, where r is the rate of inflation per year as a decimal and n is the number of years. What would be the price of a $4.99 item after six months of 5% inflation?

- algebra 2 -
**DrBob222**, Wednesday, March 31, 2010 at 5:44pm
C = 4.99(1+.05)^1/2

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