Suppose that in 2001, the average cost of a gallon of milk was $2.43. In 2007 the average price was $4.21.
Assuming the relationship is linear, find the equation of the line that models the price of milk over time since 1999.
Round to the nearest thousandth.

Question

Suppose that in 2001, the average cost of a gallon of milk was $2.43.  In 2007 the average price was $4.21. 
Assuming the relationship is linear, find the equation of the line that models the price of milk over time since 1999. 
Round to the nearest thousandth.

anonymous · Answer

4.21 = 2.43*(1 + i)^6
 
i = 0.096*100 = 9.6% is the increase on the price of milk in the considered period

anonymous · Answer

HINT: use two point formula