Question

Your calculator-making company has a policy of increasing prices 2% per year above the rate of inflation. Inflation last year was 1.9%. If your calculator was priced at $80 last year, how much should it be this year

Answer 1

According to the policy of calculator-making company on increasing the price by 2%. The Current price should be $81.55.

What is inflation?

Inflation is defined as a general rise in the price of goods and services in a given economy. When the general price level rises, each unit of currency buys fewer products and services, resulting in a loss of purchasing power.

Computation of price of current year:

According to the given information,

Last year price of Calculator = $80,

Policy of raise in price = 2%

Last year inflation rate = 1.9%

Then,

$\text{Current Price} = \text{Price} + (\text{Price} \times \text{Inflation Rate} )+\text{ Increasing Price}\\\\\text{Current Price} = \ 80+ (\ 80 \times 1.9\%) + 2\%\\\\\text{Current Price} =\ 81.55$

Therefore, the Prince of calculator in the current year would be $81.55.

Learn more about the inflation, refer to:

https://brainly.com/question/15692461

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