The rate of inflation measures the percentage increase in the price of consumer goods. The rate of inflation in the year 2014 was 2% per year. To get a sense of what this rate would mean in the long run, let's suppose that it persists through 2034.

What would be the cost in 2034 of an item that costs $100 in 2014? (Round your answer to the nearest cent.)
$

Respuesta :

Answer:

148.59

Step-by-step explanation:

Inflation is kind of similar to interest and with that bieng said we can (kind of ) use the same formula

the time between 2034 and 2014 is 2034-2014= 20

100(1.02)²⁰=148.5947396

which we can round to 148.59