![[3] Overhead costs 8. Which indicator can be used if you know the price of an item 10 years ago and you want to construct an](http://img.homeworklib.com/questions/d5ff5ad0-a32f-11ea-84f7-43dba97bf7cc.png?x-oss-process=image/resize,w_560)
Homework Answers
Answer:- Inlation Rate
Inflation refers to an overall increase in the Consumer Price Index (CPI) over a certain period of time. CPI refers to the weighted average price of different goods. The set of goods that make up the index are representative of common consumption Basket.
Compounded Rate of Anual Inflation Rate will give you the final price you will have to pay after 10 Years.
Let existing price be X and Inflation Rate for this year be R1.
Price after 1 year= X*(1+R1)
.
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[3] Overhead costs 8. Which indicator can be used if you know the price of an...
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a. Estimate the price of the car at the end of 8 years if
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used
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