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old test problem) Consider the following table which shows the anual inf d interest rates for each year from xxx3 - xxx8 Interest rate Intlation rate 2.25000000e+0 Year xxx3 xxx4- 3.50000000e+0-2 xxx6 5000000e+0 xxx8 3.50000000e+0-2.25000000e +0 a) What was the average annual interest rate for the period? b) If the Consumer Price Index was 312.1 at the start of year xxx3, what would it be at the end of the year xxx8? c) What was the average real rate of return over the period (rate in constant dollars)?
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Annual Inflation and Interest Rates for the period xxx3-xxx8

For (b) ,the formula for CPI CALCULATION if cell D3 is given in formula bar.students are suggested to refer to that for clear understanding..Similar is for remaining D4 to D7 cells.

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