The inflation rate of the U.S. dollar is 3 percent. This means that every year prices increase by 3 percent. If a pound of vegetables cost $1.35 four years ago, what does it cost now? Use the formula P = A(1 + r)t, where P is the amount an item costs today, A is the amount the item originally cost, r is the interest rate as a decimal, and t is the time in years.