A basket of goods was valued at $45.40 in January 2011. The inflation rate for the year was 4%. What

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A basket of goods was valued at $45.40 in January 2011. The inflation rate for the year was 4%. What is the expected cost of the basket of goods in January 2012? Write your answer to the nearest cent.

2012 cost = 2011 cost * (1 + I/100)
2012 cost = 45.40 * (1 + 4/100)
2012 cost = 45.40 * (1 + 0.04)
2012 cost = 45.40 * (1.04)
2012 cost = 47.22