A father is building a playset for his son and needs to purchase lumber, nails, and fabric. When he started planning the project, the necessary lumber cost $450, the nails cost $30, and the fabric cost $80. However, recent economic inflation has caused the price of lumber to increase by 20%, the price of nails to increase by 10%, and the price of fabric to increase by 5%. In dollars, how much more money will it cost to complete the project now (after inflation) than it would have when the father began planning? Give me reasons, before answering the question
First, the initial, pre - inflation, cost of the project was 450 + 30 + 80 = $560. Then, the price of the lumber increased to 450 * 1.20 = $540. Similarly, the price of the nails increased to 30 * 1.10 = $33. And the price of the fabric increased to 80 * 1.05 = $84. Therefore, the new, post - inflation, cost of the project is 540 + 33 + 84 = $657. Thus, the cost has increased by 657 - 560 = $97. So the final answer is 97.