An engineer who owns a construction company that specializes in large commercial projects noticed that material costs increased at a rate of 1% per month over the past 12 months. If a material cost index were created for that year with the value of the index set at 100 at the beginning of the year, what is the value of the index at the end of the year? Express your answer to two decimal places.
An engineer who owns a construction company that specializes in large commercial projects noticed that material costs increased at a rate of 1% per month over the past 12 months. If a material cost index were created for that year with the value of the index set at 100 at the beginning of the year, what is the value of the index at the end of the year? Express your answer to two decimal places.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
Section: Chapter Questions
Problem 8MC
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Question
An engineer who owns a construction company that specializes in large
commercial projects noticed that material costs increased at a rate of 1% per
month over the past 12 months. If a material cost index were created for that year
with the value of the index set at 100 at the beginning of the year, what is the
value of the index at the end of the year? Express your answer to two decimal
places.
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