Indexation

Jan

I've put this in here, 'cos it should be fairly fresh to tech level students!

Trying to work out RPI rent increase from July 09 to Jul 10 and then July 10 to Jan '11 on rent of £2000

Is this correct:- 223.6/213.4 x £2000 = £2095.60
then 229.00/223.6 x £2095.60 = £2146.21

213.4 being July '09 RPI figure
223.6 being July'10 RPI figure
229 being Jan'11 RPI figure

Indexation was not my strong pint when I took my exams and never thought I would need it again!

Rinske

Looks correct to me!

Jan

Thank you, Rinske.

I remember making a right hash of this when it came up in my exam - I knew the answer (in the exam) was wrong, but couldn't work out how to correct it. It's one of those things that I cannot "see" why I am doing it and annoys me to death!!