Financial Performance - Forecasting expected price help

daniel489daniel489 Posts: 14Registered
Im having trouble working this question out in Financial Performance practice assessment 1, question 4b. Can anybody help on how to find the answer


and the answer:

Comments

  • AMillarAMillar Posts: 7Registered
    Hi, there are 2 ways you can do it. Easiest way is:

    If you work out the difference between April-May and May- June it is the same amount of £135.74 so month on month it is increasing by £135.74

    Therefore to work out September you would so £135.74*5 plus April's figure of £1,457.92


    Hope this helps


    daniel489
  • AMillarAMillar Posts: 7Registered
    The other way to do this is - You would set April as the base of 100 so it would work in the same way.

    If April is 100 and then May would be 1593.66/1457.92*100 to give you an index number of 109.3105. For September's index number it is (109.3105-100)=9.3105*5+100= 146.5526. So the amount for September would be - 146.5526/100*1457.92
    daniel489
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