Inflation Exam

Question

1) You are developing a data base for Army tracked combat vehicles and you are normalizing the data base to base year 2014 dollars. What number would you enter into the data base for a vehicle budgeted at $4,725,000 in the FY18 appropriation? (Use the inflation tables at the end of the chapter.)



$4,223,652

$4,546,640

$4,382,039

$4,382,304

Answer 1

FV=4,725,000/(1+i)^4

whatever i rate you have in the tables.
for instance, say i= 2Percent
FV=( )(1.02)^4== 4365169.64

Answer 2

$4,223,652

Answer 3

$4,382.039

Answer 4

Its $4,223,652 I in DAU these guys BoTS