Question

During the worst periods of hyperinflation in a certain country, the price of food increased at a rate of 15% per month. State whether this increase was linear or exponential. If your food bill was $130 in one month during this period, what was it three months later?What was the monthly food bill after three months?$  enter your response here

Answer 1

Given:

Increased rate = 15%

One month bill = $130

Find-:

What was the monthly food bill after three​ months?

Explanation-:

Formula:

$A=P(1+\frac{r}{100})^n$

Where,

$\begin{gathered} A=\text{ Amount after time} \\ \\ P=\text{ Initial amount} \\ \\ r=\text{ Rate} \\ \\ n=\text{ Time period } \end{gathered}$

The given value is:

$\begin{gathered} P=130 \\ \\ r=15 \\ \\ n=3 \end{gathered}$

Amount after 3 months.

$A=P(1+\frac{r}{100})^n$$\begin{gathered} A=130(1+\frac{15}{100})^3 \\ \\ A=130(1+0.15)^3 \\ \\ A=130(1.15)^3 \\ \\ A=130\times1.521 \\ \\ A=197.714 \end{gathered}$

So, the food bill after three months is $197.714