Question

3 years ago the bus fare from Lae to Madang was K60. Now it is K80.
Calculate the average annual rate of inflation for the cost of fares from Lae to Madang over 3 years.
Use the formula A=PR^(n)
Where:
A is the inflated value after n years.
P is the principal
R = 1+ r/100
n is the terms or number of years.

Answers

Answer
Proof check your answer by substituting 12.25% into the formula A=PR^(n) to find A.
Where:
P is the principal = K60
R = 1+(12.25/100)
n = 3 years
Answer
K84.30 is not equivalent to K80. So that means your rate calculation is wrong. Redo the original question.
There are no AI answers yet. The ability to request AI answers is coming soon!

Related Questions