Answer
The price increase in nine months is $=\$7.15$.
Work Step by Step
Current cost of the item $c=\$299$.
Rate of inflation $r=3.2\%=0.032$.
Number of years $n=\frac{9}{12}=\frac{3}{4}$.
The given formula is
$\Rightarrow C=c(1+r)^n$
Substitute all values.
$\Rightarrow C=299(1+0.032)^{\frac{3}{4}}$
Simplify.
$\Rightarrow C=\$306.15$
Increment in the price $C-c=\$306.15-\$299$ $=\$7.15$.
