The Bank of England has an inflation calculator website that uses the UK price index to show how the cost of goods and services has changed since 1750. The website reveals that something that cost £10,000 in 1920 cost £7984 in 1940. What was the average annual inflation rate over that 20-year time period in the early-to-mid 20th century?

What will be an ideal response?


7984 = 10,000(1 + f)²?
(1 + f)²? = 0.7984
(1 + f) = 0.7984)^0.05
f = -0.0112 (-1.12% per year)

Trades & Technology

You might also like to view...

The term ____________________ refers to a PV cell configuration in a module where glass is not only used as a supporting structure but also as a window for the illumination of the cells.

Fill in the blank(s) with the appropriate word(s).

Trades & Technology

What type of line is line K?

What will be an ideal response?

Trades & Technology

Which of the following operations would normally be done using a pneumatic stapler rather than a power nailer?

a. Installing finish work b. Installing insulation c. Constructing cabinets d. Installing framing

Trades & Technology

Corn gluten meal acts as a slow-release nitrogen fertilizer

Indicate whether the statement is true or false

Trades & Technology