The Table Below Gives the Annual Rate of Inflation During

question 6

Multiple Choice

The table below gives the annual rate of inflation during a five- year period. $$\begin{array} { | l | l | l | l | l | l | } \hline & 2000 & 2001 & 2002 & 2003 & 2004 \\\hline \text { Annual rate of inflation } & 1.8 \% & 2.1 \% & 29 \% & 2.4 \% & 2.7 \% \\\hline\end{array}$$ If a nominal house price at the end of 2000 was $10.8 million, find the real house price adjusted to prices prevailing at the end of the year 2003. Round your answer to three significant figures.

• A)$10.9 million
• B)$9.9 million
• C)$11.8 million
• D)$10.0 million
• E)$11.6 million

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Definitions:

Love And Affection

An emotional state or feeling of strong attachment and personal bond towards another person or persons.

Adequate Consideration

The fair and reasonable value exchanged in a contract that is sufficient to make the agreement binding and enforceable.

Requirement

is a necessary or obligatory condition that must be met or complied with, often specified for purposes like quality, safety, or performance.

Consideration

A fundamental concept in contract law, referring to something of value that is exchanged between parties as part of an agreement.