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13 August, 08:06

Between 2005 and 2008, the average rate of inflation was about3.4 per year. If a cart of groceries cost $140 in 2005, what did it cost in 2008

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  1. 13 August, 08:30
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    The formula is

    A=p (1+r) ^t

    A future value?

    P current value 140

    R rate of inflation 0.034

    T time 2008-2005=3 years

    A=140 * (1+0.034) ^ (3)

    A=154.77 round your answer to get

    A=155
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