Question

The inflation rate of the U.S. dollar is 3.7 percent. What this means is that every year, prices increase by 3.7 percent. If a quart of oil cost $1.69 five years ago, what does it cost now?

Answer 1

y = y_0(1+0.037)^t

Where y = amount after inflation
y_0 = amount before inflation
t = number of years

Solve for y