Question

in march 2020 egg prices hit record levels has pandemic buying boost to demand wholesale prices of “Midwest large” eggs hidden all-time high of $3.09 on average the price of eggs has increased by 2% per year given the price of eggs in 2020 what would you expect the price of “midwest large” eggs to have been 10 years ago in 2010

Answer 1

By formula,

`\text{Current Value=Initial Value(1-}(r)/(100))^n`

Where Current Value = $3.09,Let Initial Value = x, r = 2% and n = 10 years.

`\begin{gathered} 3.09=x(1+(2)/(100))^(10) \\ \\ 3.09=x((102)/(100))^(10) \\ 3.09=x(1.02)^(10) \\ \text{Dividing both sides by 1.02}^(10),\text{ we get} \\ x=(3.09)/(1.02^(10))=\text{ 2.5349}\approx\text{ \$2.53} \end{gathered}`

The price of Midwest large eggs in 2010 was $2.53