Four liters of milk cost $3.59 today. How much will it cost you to buy four liters of milk for your grandchildren in 35 years if inflation averages 5% per year?
A) $19.80
B) $12.34
C) $3.77
D) $6.28

Question

Quizplus · Accepted Answer

To calculate the future cost of milk with an average inflation rate of 5% per year for 35 years, you can use the formula for future value: Future Value = Present Value * (1 + inflation rate)^number of years. Plugging in the values: $3.59 * (1 + 0.05)^35 = $19.80.

Four Liters of Milk Cost $3