Question

Asked Feb 2, 2019

Step 1

Thank you for the question. Here there are 4 subparts in the question. According to our policies cannot answer more than 3 questions per session. So I am answering first three questions. You can use these solutions as reference and solve last part or you can request for help through new request.

Step 2

Given that food prices risen about 4% per year for the last five years.

Given that gallon of milk cost $2 five years ago, we need to find its cost today.

If a quantity a_{0} is increased by i% every year and then after n years it is accumulated to a_{n}. then a_{n}_{ }is given by the below mentioned formula and we know here given that every year 4% increase in price of milk per gallon, so i = 4% and five years ago price is $2. So a_{0}=2. Here we need to find the price after 5 years so n = 5. By substituting this values we can calcualte the price of milk after 5 years.

We get price of gallon of milk after 5 years if the price is raising from 2$ at 4% per year is $2.43 (after rounding upto two decimals).

Step 3

Given a gallon of milk cost x$ five years ago and it increases at rate 4% per year for the last five years.

If a quantity a0 is increased by i% every year and then after n years it is accumulated to an. then an is given by the below mentioned formula and here given that every year 4% increase in price of milk per gallon, so i = 4% and five years ago price is $x. So a0...

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