Inflation Calculation Exercise (5%)| Instructions: 1. Complete the table below, using the information and formulas provided in class S (see PDF document posted on Blackboard). 2. Calculate the annual average inflation rate for the period 2000-2016 (16 years). 3. Provide an example of your calculations (CPI Index, annual inflation rate and average inflation rate), and round your final results to two decimal places. Value of basket of goods CPI index Annual inflation CPI index Annual inflation Year (Dollars) 2000=100 rate (9%) 2010=100 rate (9%) 2000 435,851 100 2001 436,914 2002 446,388 200 462,651 2004 496,804 2005 489,437 2006 180,454 2007 499,499 2008 516,147 200 551,423 2010 528,990 100 2011 713,998 2012 772,692 2013 876,943 2014 935,141 2015 980,725 2016 911,199Rule of Three The so-called rule of three is an educational tool utilized historically to verbalize the process of solving basic linear equations with four terms where three of the terms are known. Evidence suggests that there are two "different" rules of three: One direct and one inverse. The direct rule of three describes the process for finding the fourth term d of a proportion b (1) given that a, b, and c are known. In words, the solution is to "multiply the second and third numbers together, and divide product by the first" so that the term d in equation (1) above becomes bc = - a (2) The inverse rule of three describes the process of solving for d when ab = co and a, b, and c are known. In words, one solves the problem by "multiplying the first and second terms together, and dividing the product by the third" so that d = ab (3) In other words: a is to b like c is to d a b C d In any of the following cases: a b a b a ? ? b C ? 2 d d C. - d