Neco 2019 Economics Question 21
Practice objective / multiple choice question 21 from the 2019 Neco Economics examination.
Given that the Consumer Price Index (CPI) was 120 in 2015, 126 in 2016 and 133.2 in 2017, the government aims for an average annual inflation rate of 5\% over the five‑year period 2015‑2019. Assuming the inflation rate is the same for 2018 and 2019, what constant annual inflation rate (as a percentage, to one decimal place) must apply in each of those two years to meet the target? Use the compound‑growth expression \((1+0.05)^{5}\).
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About This Question
This is Neco 2019 Economics Question 21. It is one of the objective questions from the 2019 Neco Economics examination.
Difficulty level: Medium .
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