Question

a) If the price of a train ticket from New York to Washington DC rose by the rate of inflation between 1995 and 2016, how much would a ticket cost in 2016 if it cost $100 in 1995

Answer 1

Answer:

$ 99.60

Step-by-step explanation:

Thinking process:

According to financial data, the inflation rate in 1995 was at 2.5 %.

In 2016, the inflation rate was at 2.1 %

The difference was: 2.1 - 2.5 = -0.4 %

The price in 2016 = Original price - Adjusted price

Adjusted price     = $0.004* ( 100) = 0.4$

The new price will be $100 - 0.4\\= 99.60$

The new price will be $ 99.60