index

Miss Dazy
Miss Dazy Registered Posts: 34 Regular contributor ⭐
in AAT Level 3 (Level 6 in Scotland)
hi, think i'm gettin this mixed up but... indexing would it be if you had 05 values and need to calculate 06 values

05 value x index figure from 05 / index figure from 06

or have i got the indexing backwards?

Comments

  • sammyd22
    sammyd22 Registered Posts: 207 Dedicated contributor 🦉
    Indexing is used to adjust your figures for inflation for example.
    2006 - RPI 142.5
    2007 - RPI 150

    If i have £100 in 2006 and want to adjust the amount for 2007 i would simply:

    £100 x 150/142.5 = £105.27

    Is this what you are asking?

    Hope this helps.

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