Assignments

Define the following:

a$.$ Nominal dollars

b$.$ Constant dollars

Lake City's park gazebo is available for residents to rent for picnics and other gatherings. You have been tasked with building a compelling financial story to convince the city council to raise the rental rates. The

rental revenue history is shown in Table $7\mathrm{.}2,$ along with the CPI for each of the years.

TABLE $7\mathrm{.}2$

Lake City: Park Gazebo Revenues and CPI $(1984-2012)$

a$.$ Calculate $2012$ constant dollars for the rental revenue.

b$.$ Calculate $1984$ constant dollars for the rental revenue.

c$.$ Create a line graph displaying the nominal dollars, $2012$ constant dollars, and $1984$ constant dollars across all years of data.

d$.$ How would you use these data to create a compelling financial argument to increase rental rates? Would you use all of the data?