Chapter 2, Problem 1PP

It is difficult to make a budget that spans several years, because prices are not stable. If your company needs 200 pencils per year, you cannot simply use this year’s price as the cost of pencils two years from now. Because of inflation the cost is likely to be higher than it is today. Write a program to gauge the expected cost of an item in a specified number of years. The program asks for the cost of the item, the number of years from now that the item will be purchased, and the rate of inflation. The program then outputs the estimated cost of the item after the specified period. Have the user enter the inflation rate as a percentage, such as 5.6 (percent). Your program should then convert the percentage to a decimal fraction, such as 0.056, and should use a loop to estimate the price adjusted for inflation. (Hint: Use a loop.)

Program Plan Intro

List of variables:

• cost: Store the cost of the product.
• time_in_years: Store the time in years.
• inflation_rate: Store the rate of inflation.
• Inflated_rate: Store the expected cost of the item.

List of functions used:

• cout.setf(): To display the floats with a fixed number of decimals.
• cout.precision(2): Sets this number to be two.
• cin(): To take input from input streams like keyboard, files, etc.
• cout(): To display the output.

Summary Introduction:

Program will use the Main () method to prompt the user to enter the cost, time and inflation rate. The loop will find the expected cost of the given number of years for the given amount.

Program Description:

The purpose of the program is to find the expected cost of an item in a specified number of years.

Explanation of Solution

Program:

Following is the C++ program to find the expected cost of an item in a specified number of years.

/*
* Program: The program asks the user to provide the value of the cost of the product, time in years and inflation rate to calculate the expected cost of the product.
*/
#include <iostream>
usingnamespacestd;
intmain(){
cout.setf(ios::showpoint);
cout.precision(2);
cout.setf(ios::fixed);
// Variable declaration
float cost;
cout<<"\nEnter the cost of the product: ";
//Variable declaration
cin>> cost;
// Variable declaration
inttime_in_years;
cout<<"\nEnter the time in years after which the product is purchased: ";
cin>>time_in_years;
floatinflation_rate;
cout<<"\nEnter the inflation rate: ";
cin>>inflation_rate;
floatinflated_rate= cost;
for(inti=1;i<=time_in_years;i++){
inflated_rate=inflated_rate+((inflation_rate/100)*inflated_rate);
}
cout<<"\nThe expected cost of the product is: "<<inflated_rate<<endl;
return0;
}

Explanation:

In the above program, a loop is used to find the expected cost of the product. Then cout() function is used to show the output of the program.

Sample Output:

Following is the sample output for the given program:

Enter the cost of the product: 100
 
Enter the time in years after which the product is purchased: 2 
 
Enter the inflation rate: 5.6 
The expected cost of the product is: 111.51