Simone spent an average of $500 each month on groceries last year for herself and her family. She is now forecasting the family budget for next year. She read that an inflation rate of 5% is expected. How much should Simone budget for the monthly grocery expense next year?

Question

Quizplus · Accepted Answer

Simone should budget $525 for the monthly grocery expense next year, as a 5% increase on $500 is $25, making the new total $525.

Simone Spent an Average of $500 Each Month on Groceries