An engineer who owns a construction company that specializes in large commercial projects noticed that material costs increased at a rate of 2% per quarter over the past 2 years. If a material cost index were created for that 2-year period with the value of the index set at 100 at the beginning of the period, what would be the value of the index at the end? Express your answer to two decimal places.
An engineer who owns a construction company that specializes in large commercial projects noticed that material costs increased at a rate of 2% per quarter over the past 2 years. If a material cost index were created for that 2-year period with the value of the index set at 100 at the beginning of the period, what would be the value of the index at the end? Express your answer to two decimal places.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter9: Applications Of Cost Theory
Section: Chapter Questions
Problem 5E
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Question
An engineer who owns a construction company
that specializes in large commercial projects noticed
that material costs increased at a rate of 2%
per quarter over the past 2 years. If a material cost
index were created for that 2-year period with the
value of the index set at 100 at the beginning of
the period, what would be the value of the index at
the end? Express your answer to two decimal places.
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