If Melinda Miller estimates that her $100 weekly grocery bill will increase at an annual inflation rate of 4%, what should her weekly grocery bill be in 3 years?

Name: If Melinda Miller estimates that her $100 weekly grocery bill will increase at an annual inflation rate of 4%, what should her weekly grocery bill be in 3 years?
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Question

Quizplus · Accepted Answer

Using the formula for compound interest, we can calculate Melinda's weekly grocery bill in 3 years as:

$100 * (1 + 0.04)^3 = $112.50

Therefore, the best answer choice is C.

If Melinda Miller Estimates That Her $100 Weekly Grocery Bill