Question

​(Inflation and project cash​ flows)  

If the price of a gallon of regular gasoline is ​$2.49 and the anticipated rate of inflation in energy prices is such that the cost of gasoline is expected to rise by 5 percent per​ year, what is the expected price per gallon in 10 years?

The expected price per gallon of gas in 10 years is ​$

​(Round to two decimal​ places.)

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