This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.
ScanSolve AI Answer
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. That's 2 down. 3 left today — send the next one.