Asked by Nieajua Gonzalez on Apr 30, 2024
Verified
The price of a box of chalk has increased from $.89 to $1.39 over a ten-year period. What index number would represent the change in price over the ten-year period?
A) 150.0
B) 156.2
C) 136.0
D) 142.0
E) 148.2
Chalk
Chalk is a soft, white, porous sedimentary carbonate rock, often used for writing on blackboards or in industries like construction and art.
Period
In finance, it refers to the specific duration of time during which certain transactions or processes are evaluated or financial statements are prepared.
- Determine the percentage growth or reduction in costs or prices.
Verified Answer
MW
Michayla WashingtonApr 30, 2024
Final Answer :
B
Explanation :
The index number representing the change in price is calculated by taking the new price, subtracting the old price, dividing by the old price, and then multiplying by 100 to get a percentage. So, 1.39−0.890.89×100=56.2\frac{1.39 - 0.89}{0.89} \times 100 = 56.20.891.39−0.89×100=56.2 . Adding this to 100 (to account for the original price as the base of 100), we get 156.2.
Learning Objectives
- Determine the percentage growth or reduction in costs or prices.