Question

the inflation rate on gas is 12.5%. if the price of gas was $2.15 per gallon, what is the price today?
current price = $?
round to the nearest hundredth.

Explanation:

Step1: Calculate the inflation amount

To find the inflation amount, we multiply the original price by the inflation rate (converted to a decimal). The inflation rate is 12.5% or 0.125. So the inflation amount is $2.15\times0.125$.
$2.15\times0.125 = 0.26875$

Step2: Add inflation to original price

The current price is the original price plus the inflation amount. So we add $2.15$ and $0.26875$.
$2.15 + 0.26875 = 2.41875$

Step3: Round to nearest hundredth

Rounding $2.41875$ to the nearest hundredth (two decimal places), we look at the third decimal place which is 8. Since 8 > 5, we round up the second decimal place. So $2.41875\approx2.42$

Answer:

2.42