Please show excel sheets for the following, answers areprovided
The CPI-U for Americans 62 years of age and older (some of yourprofessors and some of your authors are interested in this!)present the following annual inflation rates in percent:
  Year  |   Rate %  |
|---|
  2001  |   1.6  |   2002  |   2.4  |   2003  |   1.9  |   2004  |   3.3  |   2005  |   3.4  |
|
| a.  | Assuming the index value in year 2000 was 100.0, determine theindex for each year from 2001 to 2005 to one place after thedecimal. 101.6, 104.0, 106.0, 109.5, 113.2 |
| b.  | Since inflation, like interest, is compounded from period toperiod (e.g., year to year), estimate the overall annual inflationrate per year from 2002 to 2006. Suggestion! Do not simply averagethe rates given above. 2.51744% |
