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Real terms value

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  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Ken Garrett.
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  • April 3, 2019 at 5:59 pm #511145
    mathoto

    I need assistance please regarding the below:
    Revenue: 20×1(95 mil),20×2(99mil),20×3(104mil),20×4(107mil)
    Inflation index: 20×1(100),20×2(102),20×3(103),20×4(105)
    How much have the co revenue increased,in real terms between 20×2 and 20×4)

    April 3, 2019 at 7:08 pm #511149
    Ken Garrett
    Keymaster

    So, adjusting 20X2 revenue to 20X4 levels:

    99 x 105/102 = 101.91

    20X4/20X2 = 101.91/99 = 1.0294

    Increase = 2.94%

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