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3 years ago

If the CPI (consumer price index) of 141 increased 8.3 % this year. What was the end of year CPI?

1 answer:

4 0

If the CPI increased by 8.3%, therefore this means that there was a fractional increase of 0.083. So amount increased is:

CPI increase = 141 * 0.083 = 11.703

Therefore the end of year CPI is the sum of the original and the increase:

end of year CPI = 141 + 11.703 = 152.703

Answer:

152.703

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The formula A equals =P left parenthesis 1 plus r right parenthesis squared (1+r)2 gives the amount A in dollars that P dollars

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EXPLANATION

We substitute the given values into the formula;

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We divide through by 6000 to obtain,

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This implies that,

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We take the square root of both sides,

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This gives us,

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$r=3.5$ %

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