Table 81
(Source: U -Considering the End-Of-Year CPI Data in Table 8

question 75

Essay

Table 8.1
(Source: U.S. Bureau of Labor Statistics)
$$\begin{array} { c r c c } \hline \text { Year } & \text { CPI } & \text { Year } & \text { CPI } \\\hline 1970 & 40.8 & 2000 & 181.3 \\1975 & 53.9 & 2005 & 200.9 \\1980 & 80.8 & 2010 & 221.3 \\1985 & 109.3 & 2011 & 225.0 \\1990 & 135.5 & 2012 & 229.8 \\1995 & 161.2 & & \\\hline\end{array}$$
-Considering the end-of-year CPI data in Table 8.1:
(a) Calculate the rate of inflation between 1970 and 1975 and between 1995 and 2000.
(b) Calculate the average rate of inflation for 1970-1975 and 1970-1980.
(c) Calculate the average rate of inflation for 2000-2012 and 2005- 2010.
(d) Briefly comment on your results.

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Definitions:

Nonsufficient Funds (NSF)

A situation where a bank account does not have enough money to cover a presented check or withdrawal request.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those presented on a bank statement.

Ending Bank Statement Balance

The final balance on a bank statement at the end of a given period, reflecting all transactions that occurred during that time.

Allowance for Doubtful Accounts

A financial accounting tool used to estimate the amount of receivables that will likely be uncollectable.