Today, a typical family of four spends $897.20/month for food.† If inflation occurs at the rate of 2%/year over the next 6 years, how much should the typical family of four expect to spend for food 6 years from now? (Round your answer to the nearest cent.)

$  per month

To solve this problem, we need to apply the formula for compound growth, which is commonly used to account for inflation over time. The formula is:

\[
A = P \times (1 + r)^t
\]

Where:
- $A$ is the amount after inflation.
- $P$ is the present amount.
- $r$ is the annual rate of inflation (as a decimal).
- $t$ is the time in years.

### Given:
- $P = 897.20$ (current monthly spending on food),
- $r = 0.02$ (2% inflation rate per year),
- $t = 6$ (number of years).

### Now, substitute the values into the formula:

\[
A = 897.20 \times (1 + 0.02)^6
\]
\[
A = 897.20 \times (1.02)^6
\]
\[
A \approx 897.20 \times 1.12616
\]
\[
A \approx 1010.36
\]

So, after 6 years, the family can expect to spend approximately **$1,010.36** per month on food.

Would you like further details or have any questions?

Here are some related questions you might find useful:
1. What if the inflation rate was 3% instead of 2%?
2. How would the result change if the inflation lasted for 10 years instead of 6 years?
3. Can we calculate the total amount the family will spend on food over the next 6 years?
4. How does this calculation change if inflation compounds monthly instead of yearly?
5. How much would a 5% inflation rate affect the monthly food expenses after 6 years?

**Tip:** Inflation compounding over time affects not only monthly costs but also total expenditures over long periods. Keep that in mind for budgeting.

Today, a typical family of four spends $897.20/month for food. If inflation occurs at the rate of 2%/year over the next 6 years, how much should the typical family of four expect to spend for food 6 years from now? (Round your answer to the nearest cent.)

Learn how to calculate future monthly food costs for a typical family of four, given a 2% annual inflation rate over 6 years. This example uses the compound growth formula and illustrates how inflation impacts everyday expenses. Suitable for high school students in Grades 9-12.

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