Question

During the worst periods of hyperinflation in a certain country, the price of food increased at a rate of 10% per month.

State whether this increase was linear or exponential. If your food bill was $110 in one month during this period, what
was it three months later?

Answer 1

Explanation:

Exponetial (compounding ) growth

New Price = original price ( 1 + .10)^n n is months .10 is 10% per month

= $ 110 ( 1.10)^3 = $ 146 . 41 three months later