Question

The price for a gallon of whole milk has increased from 2006 to 2008. From 2006 to 2007, the cost of whole milk increased by approximately 56%. From 2007 to 2008, the cost of milk whole milk increased by approximately 42%. If, on average, the cost for a gallon of whole milk nationwide was $1.99 at the beginning of 2006, determine the cost for a gallon of whole milk by the end of the year 2008. Round your answer to the nearest cent.
a.
$3.10
c.
$2.83
b.
$4.41
d.
$3.94

Answer 1

2006 was 1.99 per gallon
From 2006 - 2007 cost increases 56 % :
(1.99)(.56) = 1.12......1.99 + 1.12 = 3.11
From 2007 - 2008 cost increased 42% :
(3.11)(.42) = 1.31 .....3.11 + 1.31 = 4.41 < -- answer