Np. Same day! Good Luck.
I have two questions that are similar concept but can't seem to understand the calculation why one you multiply while the other is divide. Here are the questions.
A hospital is comparing last year's emergency rescue services expenditures to those from 10 years ago. Last year's expenditures were $100,500. Ten years ago, the expenditures were $72,800. The CPI for last year is 168.5 as compared to 121.3 ten years ago. After adjusting for inflation, what percentage change occurred in expenditures for emergency rescue services?
A lender and a borrower signed a contract for a $1,000 loan for one year. The lender asked the borrower to pay 3% interest. Inflation occurred and prices rose by 2% over the next year. The borrower repaid $1,030. What is the amount worth in real terms, after inflation?
I get for the second one since there is inflation in the following year your dollar would definitely worth less than what you paid so the answer should be below 1030. Likewise, the first question what we paid 10 years ago would require much more money now to buy the same item (200 computer 5 years ago vs 400 computer today). I understand the logic I guess.. Not sure if anyone is understanding what Im trying to ask haha. Kinda confusing myself.
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