The cost of 1,000 cubic feet of natural gas has increased from Php 300 in 2000 to Php 750 in 2006. What compounded annual increase in cost is this? How does the increase in the cost of natural gas compare to a 3% annual rate of inflation during the same period of time?

The cost of 1,000 cubic feet of natural gas has increased from Php 300 in 2000 to Php 750 in 2006. What compounded annual increase in cost is this? How does the increase in the cost of natural gas compare to a 3% annual rate of inflation during the same period of time?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The cost of 1,000 cubic feet of natural gas has increased from Php 300 in 2000 to
Php 750 in 2006. What compounded annual increase in cost is this? How does the
increase in the cost of natural gas compare to a 3% annual rate of inflation during
the same period of time?

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