Chapter 1.4, Problem 3A

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 pizza goes up by 5% again the following year, fill in each blank to complete the calculation you’d use to find the price after two 5% increases.