The following table shows a utility company's cost to supply a fixed amount of power to a new housing development; the indices are specific to the utility industry. Assume that year O is the base period. Determine the specific inflation for each period and calculate the average inflation rate over the three-year period. Year Cost $504,000 1 $538,400 $577,000 $629,500 2 3 The inflation rate between year 0 and year 1 is %. (Round to two decimal places.) The inflation rate between year 1 and year 2 is %. (Round to two decimal places.) The inflation rate between year 2 and year 3 is %. (Round to two decimal places.) The average inflation rate over the three-year period is %. (Round to two decimal places.)

Database System Concepts
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ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
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8.

Homework #2-Xiaoyu Liu
8. The following table shows a utility company's cost to supply a fixed amount of power to a new housing development; the indices are specific to the utility industry.
Assume that year 0 is the base period. Determine the specific inflation for each period and calculate the average inflation rate over the three-year period.
Year
Cost
$504,000
1
$538.400
$577,000
3
$629,500
The inflation rate between year 0 and year 1 is
%. (Round to two decimal places.)
The inflation rate between year 1 and year 2 is
%. (Round to two decimal places.)
The inflation rate between year 2 and year 3 is
%. (Round to two decimal places.)
The average inflation rate over the three-year period is
%. (Round to two decimal places.)
Transcribed Image Text:Homework #2-Xiaoyu Liu 8. The following table shows a utility company's cost to supply a fixed amount of power to a new housing development; the indices are specific to the utility industry. Assume that year 0 is the base period. Determine the specific inflation for each period and calculate the average inflation rate over the three-year period. Year Cost $504,000 1 $538.400 $577,000 3 $629,500 The inflation rate between year 0 and year 1 is %. (Round to two decimal places.) The inflation rate between year 1 and year 2 is %. (Round to two decimal places.) The inflation rate between year 2 and year 3 is %. (Round to two decimal places.) The average inflation rate over the three-year period is %. (Round to two decimal places.)
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