# inflation

• Feb 4th 2008, 11:00 AM
crazykitty
inflation
Hi everyone,
I cant figure out this equation:

i have to find the rate of inflation using these numbers and formula.

in 1980: 82.4 1981: 90.9
(90.9-82.4)/82.4=

For a 3% rate of inflation per year from 2003 on What would the consumer price index be in 2006?

I have to use a table with these dates:
2001: 177.1
2002: 179.9
2003: 184.0
2004: 189.5
2005 (est) 195.0
2006 (est) 200.5

Please I really stink at these things!!! :confused::eek:
• Feb 4th 2008, 11:26 AM
colby2152
Quote:

Originally Posted by crazykitty
For a 3% rate of inflation per year from 2003 on What would the consumer price index be in 2006?

I have to use a table with these dates:
2001: 177.1
2002: 179.9
2003: 184.0
2004: 189.5
2005 (est) 195.0
2006 (est) 200.5

Please I really stink at these things!!! :confused::eek:

You have three years from 2003, and all you need is the 2003 data.

\$\displaystyle A_{2006}=184(1.03)^3\$
• Feb 4th 2008, 02:12 PM
crazykitty
Thankyou
Thank you so much!!! :)
• Feb 4th 2008, 06:32 PM
colby2152
Quote:

Originally Posted by crazykitty
Thank you so much!!! :)

You are welcome crazykitty!(Handshake)