Chapter 1.4, Problem 1A

Name ____________________________________________________________

Due to a variety of factors including fuel prices and adverse weather patterns, the cost of many groceries is expected to increase by as much as 5% per year. Let’s illustrate the effects on consumers using the example of a frozen pizza that currently costs $5.60.

If the price of the pizza does go up by 5% next year, find the amount of increase and the new cost.