The table below shows hypothetical tuition costs at a Canadian university. $$\begin{array}{l}
\begin{array} { | l | l | }
\hline \text { Year } & \text { Tuition } \
\hline 2005 & \$ 5000 \
\hline 2006 & \$ 5050 \
\hline 2007 & \$ 5100 \
\hline 2008 & \$ 5150 \
\hline 2009 & \$ 5200 \
\hline
\end{array}\
\text { TABLE 2- } 1
\end{array}$$
-Refer to Table 2- 1. Assume that 2005 is used as the base year, with the index number = 100. The value of the index number in 2009 is
A) 96
B) 1.04
C) 0.96
D) 100
E) 104

Question

The table below shows hypothetical tuition costs at a Canadian university. $$\begin{array}{l}
\begin{array} { | l | l | } 
\hline \text { Year } & \text { Tuition } \
\hline 2005 & \$ 5000 \
\hline 2006 & \$ 5050 \
\hline 2007 & \$ 5100 \
\hline 2008 & \$ 5150 \
\hline 2009 & \$ 5200 \
\hline
\end{array}\
\text { TABLE 2- } 1
\end{array}$$
-Refer to Table 2- 1. Assume that 2005 is used as the base year, with the index number = 100. The value of the index number in 2009 is
A) 96
B) 1.04
C) 0.96
D) 100
E) 104

Quizplus · Accepted Answer

The index number is calculated by dividing the tuition cost of 2009 by the tuition cost of the base year (2005) and then multiplying by 100. So, (5200/5000) * 100 = 104.

The Table Below Shows Hypothetical Tuition Costs at a Canadian