An online business sells two varieties of cat food, 'standard' and 'luxury'. It orders these from its supplier each October for the year ahead. The data for 2021 and 2022 are displayed in Table 1. Table 1 2021 2022 Standard price (£ per kg) 36.20 38.90 Standard expenditure (£) 285.62 268.41 Luxury price (£ per kg) Luxury expenditure (£) 44.50 49.70 431.21 497.97 (a) Calculate the (chained) price index for 2022, taking 2021 as the base year. (b) The RPI for October 2021 was 312.0, and the RPI for October 2022 was 356.2. Use this information, together with your calculation from (a), to compare the change in cat food prices with the overall change in this period. (c) An RPI index-linked pension was £450 per month in October 2021. How much should the pension be per month in October 2022? Give your answer rounded to the nearest pound. (d) Calculate the purchasing power of the pound in October 2022 compared with October 2021. Give your answer rounded to the nearest penny.
An online business sells two varieties of cat food, 'standard' and 'luxury'. It orders these from its supplier each October for the year ahead. The data for 2021 and 2022 are displayed in Table 1. Table 1 2021 2022 Standard price (£ per kg) 36.20 38.90 Standard expenditure (£) 285.62 268.41 Luxury price (£ per kg) Luxury expenditure (£) 44.50 49.70 431.21 497.97 (a) Calculate the (chained) price index for 2022, taking 2021 as the base year. (b) The RPI for October 2021 was 312.0, and the RPI for October 2022 was 356.2. Use this information, together with your calculation from (a), to compare the change in cat food prices with the overall change in this period. (c) An RPI index-linked pension was £450 per month in October 2021. How much should the pension be per month in October 2022? Give your answer rounded to the nearest pound. (d) Calculate the purchasing power of the pound in October 2022 compared with October 2021. Give your answer rounded to the nearest penny.
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter4: Eigenvalues And Eigenvectors
Section4.6: Applications And The Perron-frobenius Theorem
Problem 22EQ
Related questions
Question
Transcribed Image Text:An online business sells two varieties of cat food, 'standard' and 'luxury'. It
orders these from its supplier each October for the year ahead. The data for
2021 and 2022 are displayed in Table 1.
Table 1
2021
2022
Standard price (£ per kg)
36.20 38.90
Standard expenditure (£) 285.62 268.41
Luxury price (£ per kg)
Luxury expenditure (£)
44.50 49.70
431.21 497.97
(a) Calculate the (chained) price index for 2022, taking 2021 as the base
year.
(b) The RPI for October 2021 was 312.0, and the RPI for October 2022
was 356.2. Use this information, together with your calculation
from (a), to compare the change in cat food prices with the overall
change in this period.
(c) An RPI index-linked pension was £450 per month in October 2021.
How much should the pension be per month in October 2022? Give
your answer rounded to the nearest pound.
(d) Calculate the purchasing power of the pound in October 2022 compared
with October 2021. Give your answer rounded to the nearest penny.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 1 steps
Recommended textbooks for you
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt