Inflation

Once upon a time, tsar owned a money printer and printed and printed. The result of printing money prices went up,in the first year 3.9 %, in the second 6%, in the third 4.7% and in the fourth 5.5%.

Then tsar was failed in election.

Calculate the average annual inflation rate (percentage of price increase) during this four years.

Result

i =  5 %

Solution:

i=100((1+3.9100)(1+6100)(1+4.7100)(1+5.5100)41)=5%i = 100\left(\sqrt[4]{(1+\dfrac{ 3.9}{100})(1+\dfrac{ 6}{100})(1+\dfrac{ 4.7}{100})(1+\dfrac{ 5.5}{100})}-1\right) = 5 \%



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