The price index was 92 in 2005 and,between 2005 and 2006,the inflation rate was 13 percent.The price index in 2006 was

Question

Quizplus · Accepted Answer

To find the price index in 2006, we need to calculate the percentage change from 2005 to 2006 using the inflation rate:

Percentage change = inflation rate / 100 = 13 / 100 = 0.13

Then, we can calculate the price index in 2006 using the following formula:

Price index in 2006 = Price index in 2005 × (1 + percentage change)

Price index in 2006 = 92 × (1 + 0.13) = 103.96

Therefore, the best choice is A) 103.96.

The Price Index Was 92 in 2005 And,between 2005 and 2006,the