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

## Answer this Question

## Related Questions

- Economics (inflation) - Hello! Could someone please check my answers for the ...
- Macroeconomics - cost in 2005 is 15.00 cost on 2009 is 20.50 Consumer price ...
- Trig! - a) The annual inflation rate is 3.5% per year. If a movie ticket costs $...
- economics - which of the following statements about inflation are true? check ...
- Algebra - What would the currency be from Afghanistan currency if sunglass cost...
- business - As part of your financial planning, you wish to purchase a new cat ...
- math - Inflation is currently causing the cost of items to increase by about 2.5...
- math - Confused! So here is the question: Inflation is currently causing the ...
- Inflation - What long term effect do lifting of price controls have on inflation...
- math - Suppose that inflation is 3% per year. This means that the cost of an ...

More Related Questions