Question

The Pell Grant program of the federal government provides financial aid to needy college students. If the average grant is slated to increase from $4050 to $5400 over the next 5 years "to keep up with inflation," what is the average inflation rate per year expected to be?

Answer 1

Answer:

The average inflation rate per year is expected to be 6,6%.

Explanation:

Inflation refers to the increase in the price of goods and services in a specific period of time. Considering that the statement says that the average grant is slated to increase from $4050 to $5400, you can calculate the average inflation rate per year by calculating the price increase percentage and then dividing that by 5:

($5400-$4050)/$4050= 0,33*100= 33%

33%/5= 6,6%