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Average Annual Inflation Rate with Actual Prices Adjusted

Thirty years ago, the price of a new Volkswagen was $5,000. (Actual price adjusted to simplify the calculation). The price of a new Volkswagen is $20,000 today. Basing your answer solely on the aforementioned prices, by what percent have prices increased over the past thirty years? What average annual inflation rate would have resulted in this answer?

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M926686

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