What was the price of a dress in 2013 if it cost R1,300.95 in 2014 and the inflation rate in 2013 was 6.5%?

Question

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Step 1: Identify the given values. The price of the dress in 2014 (FV) is R1 300,95. The inflation rate for 2013 (r) was 6,5%. We are looking for the price in 2013 (PV). Step 2: Convert the inflation rate to a decimal. 6,5% = (6,5)/(100) = 0,065 Step 3: Use the inflation formula to find the past price. The future price is calculated as FV = PV × (1 + r). To find the past price (PV), we rearrange the formula: PV = (FV)/((1 + r)) Step 4: Substitute the given values into the formula. PV = R1 300,95(1 + 0,065); PV = R1 300,951,065; PV = R1221,549295... Step 5: Round the answer to two decimal places, as it represents currency. PV ≈ R1221,55 The price of the dress in 2013 was R1221,55. The final answer is R1221,55.

What was the price of a dress in 2013 if it cost R1,300.95 in 2014 and the inflation rate in 2013 was 6.5%?

Answer

Step-by-step solution

Identify the given values.

Convert the inflation rate to a decimal.

Use the inflation formula to find the past price.

Substitute the given values into the formula.

Round the answer to two decimal places, as it represents currency.

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