If Patty Shoemaker estimates that her $400 weekly grocery bill will increase at an annual inflation rate of 5%, what should her weekly grocery bill be in 4 years?

The weekly grocery bill of  Patty Shoemaker in the next four years would be $486.2025.

The estimated grocery bill is $400 with an inflation rate of 5% or 0.05.

The computation of grocery bill after four years would be as follows:

Here, the value is derived by adding the rate of interest in 1 and then multiplying it with the power of 4 and finally multiplying the value with the estimated grocery bill.

Learn more about inflations and bills here:

link

the weekly grocery bill in 4 years is $486.2025

Explanation:

The computation of the weekly grocery bill in four years is shown below:

= Estimated amount × (1 + rate of interest)^number of years

= $400 × (1 + 0.05)^4

= $400 × 1.21550625

= $486.2025

hence, the weekly grocery bill in 4 years is $486.2025

We simply applied the above formula so that the correct value could come

And, the same is to be considered