Granola Inflation
A box of Crunchy Granola is selling for $2.98 at the Healthy Grocery Mart. The inflation rate for
granola has been noted to be 4% annually.
1. What do you expect the price to be a year from now?
2. What would you expect the price to have been a year ago?
3. Write an equation that models this information. Does this represent exponential
growth or decay?
4. Assuming a steady inflation rate, in what year would you expect the price of
a box of Crunchy Granola to be more than $3.50?