The current gasoline price is 5$ per gallon, and it is projected to increase next year by 5%, 8% the following year, and 3 % the third year. What is the average inflation rate for the projected gasoline price for the next three years

The current gasoline price is 5$ per gallon, and it is projected to increase next year by 5%, 8% the following year, and 3 % the third year. What is the average inflation rate for the projected gasoline price for the next three years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The current gasoline price is 5$ per gallon, and it is projected to increase next year by 5%, 8% the
following year, and 3 % the third year. What is the average inflation rate for the projected gasoline
price for the next three years

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Given:

Current gasoline price = $5

It is expected to increase next year by 5%, 8% the following year, and 3% the third year.

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