answer all questions with explanation

Section B (Continued) Q2. (a) Consider the data set in Table 4 that shows the average monthly household income in the United States from 2015 to 2019. Table 4 Income Consumer Price Index Year ($000) (2012 = 100) 2015 3.8 149.1 2016 4.57 162.9 2017 5.40 173.3 2018 6.16 182 2019 7.25 196 (i) Construct another index series from 2015 to 2019 by using 2015 as the base year. (5 marks) (ii) Based on your answer in (a) (i), compute inflation rate from 2016 to 2019. (4 marks) (iii) Compute the income at the constant price of 2015 from 2016 to 2019. (4 marks) (iv) Based on your answer in (a) (iii), is the average household income better or worse off in 2019 as compared to 2018? Provide your reasoning to support your answer. (2 marks) (b) John won an annuity that pays RM1,000 at the end of every three months for three years. If the money is worth 16% compounded quarterly, determine the value of this annuity at the beginning of the period