Table 3.12 gives the annual rate of inflation during a five-year period. If a nominal house price

Question:

Table 3.12 gives the annual rate of inflation during a five-year period. Year 2 4 Annual rate of inflation 1.8% 2.1% 2.9% 2.4% 2.7% If a nominal house price at the end of Year 1 was $10.8 million, find the real house price adjusted to prices prevailing at the end of Year 4. Round your answer to three significant figures.