Assume the rate of inflation is 8% per year for the next 2 years. What will be the cost of goods 2 years from now, adjusted for inflation, if the goods cost $280.00 today?

Work Shown:

F = future value

P = present value = 280

r = rate of inflation in decimal form = 0.08

t = elapsed time in years = 2

F = P*(1+r)^t

F = 280*(1+0.08)^2

F = 326.592

F = 326.59

answer: since the question is talking about growth you have to use the growth formula which is inital amount (1 + growth)^time

step-by-step explanation:

the intial amount is 1200, the growth is 4.8, and the time is 7. plug those numbers into the equation, also i think you have to change 4.8 into a percent. but, i have forgotton how to do that. if this is a online class go on to the lesson.