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5. Consider the price of a new Honda Civic LX 4 door, 5-speed sedan. In 2002, this car sold new for $13,900. For each calculation,
5. Consider the price of a new Honda Civic LX 4 door, 5-speed sedan. In 2002, this car sold new for $13,900. For each calculation, show 3 significant digits after the decimal point a. In 2003, the same new car (i.e., the 2003 model) cost $14,300. Calculate the 1- year (from 2002 to 2003) inflation rate in the price of this car b. In 2004, the same new car (i.e., the 2004 model) cost $14,750. Calculate the 1- year (from 2003 to 2004) inflation rate in the price of this car c. Calculate the compounded annual rate of inflation in the price of this car, over the 2-year period from 2002-2004
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