CPM Homework Help : GB8I Problem 9-37

The increased demand for vegetarian meals has caused an increase in the price of tofu. If the cost of tofu is currently $ $2.99$ per pound, and is increasing by $6$ % per year, what will it cost in $5$ years?

Hint:

Use the Compound Interest formula: $t(n) =\text{ Initial Amount }· (1 +\text{ rate})^n$

Answer:

$ $4.00$