Question
In: Finance
Shining Faces daycare centre was charging $500 a month for one child when the CPI was...
Shining Faces daycare centre was charging $500 a month for one child when the CPI was 109.8. They put their monthly fee up to $550 a month for one child when the CPI rose to 111.7. What should their monthly fees have risen to if they had simply kept pace with inflation?
Solutions
Expert Solution
Infltion = current index / base index
= 111.7/ 109.8
= 1.01730418943533
fee should have been = 500 * 1.01730418943533
= 508.65
fees should have been 508.65
jeff jeffy answered 2 years agoRelated Solutions
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