An index has a market value of $689,400 at the beginning of the period and $722,009 at the end of the period. If you want the beginning index value to be 100, what is the ending index value?

Question

Business

Jasmine Mcdonald

16 August, 20:39

An index has a market value of $689,400 at the beginning of the period and $722,009 at the end of the period. If you want the beginning index value to be 100, what is the ending index value?

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Answers (1)

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Immanuel Hill · Answer 1

The ending index value is 104.73

Explanation:

we will simply divide the end of the period value over the beginning of the period and then multiply by 100 to get the ending period index.

722,009 / 689,400 x 100 = 104,73

The following periods will also be converted into a price index considering the base year. We will not use the previous year base price.