An automobile that cost Php975,500 in 2004 has an equivalent model four years later in 2008 that cost$1,112,500. If inflation is considered the cause of the increase, what was the average annual rate of inflation?

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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An automobile that cost Php975,500 in 2004 has an equivalent model
four years later in 2008 that cost$1,112,500. If inflation is considered the
cause of the increase, what was the average annual rate of inflation?
Transcribed Image Text:An automobile that cost Php975,500 in 2004 has an equivalent model four years later in 2008 that cost$1,112,500. If inflation is considered the cause of the increase, what was the average annual rate of inflation?
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