At year 1 prices = take to volume index for year 2 / volume index year 1 (base) * year one actual price ( base)

148/140*384,000 = 405943

To go along the rest of the line change the first index i.e 148 for the corresponding index for the year

At expected price = this is exactly the same process but rather than multiply using the base price of £384,000 we need to find out what the expected price is by using the sales price index to get the new sales value for each year

Hi, I am doing the same question and I am struggling to see how to keep going. I get the explanation of working out the year 2 expected price but I can’t seem to use the formula for years 3,4 etc. This is really frustrating me that I can’t get this. Could you help please?

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