Engineering Economy (16th Edition) - Standalone book
Engineering Economy (16th Edition) - Standalone book
16th Edition
ISBN: 9780133439274
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 8, Problem 1P
To determine

Calculate the inflation rate.

Expert Solution & Answer
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Explanation of Solution

Annual inflation rate (if) can be calculated as follows.

Price2014=Price1980(1+if)n2,400=850(1+if)34if=0.031

Annual inflation rate is 3.1%.

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