Test Help - Numerical

#1

Price Indices
House Price Index(start of the year)
1996 100, 85 (In the Capital, Outside of the Capital Respectively)
1997 118, 99
1998 134, 115
1999 182, 146
2000 216, 175
2001 261, 211

Retail Price Index (start of the year)
1996 100.0
1997 101.6
1998 103.7
1999 106.1
2000 113.3
2001 117.6

Inflation Rate(for the year)
1996 1.5%
1997 1.6%
1998 2.0%
1999 1.6%
2000 5.6%
2001 4.2%

  • A price index is a measure of the average rate of change in price of specific goods.

If the Inflation Rate in 1996 were tripled and the House Price Index were only affected by inflation, what would the House Price Index Outside the Capital be starting in 1997?

A. 89.08
B. 85.05
C. 89.50
D.88.83
E.87.87