Calculate constant dollars for the expenditures

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Reference no: EM132199616

Question - Big East City's Public Works Department is asking for an additional $100,000 for sign repairs in the next budget cycle because its costs have increased by at least that much since 1995. The department has provided you with the information in Table Big East City has adjusted funding for each of its departments every year to keep up with the buying power of money.

Table - Big East City: Expenditures for Sign Repairs and Price Deflator (1984-2012)
Year	Expenditures	Urban Gov't	Year	Expenditures	Urban Gov't
1995	134,486	72.258	2004	223,622	94.062
1996	144,489	73.812	2005	248,757	100.000
1997	151,584	75.219	2006	286,331	105.276
1998	161,148	76.320	2007	300,483	111.112
1999	175,015	79.036	2008	288,316	117.666
2000	193,276	82.482	2009	247,011	116.763
2001	201,670	85.019	2010	229,100	119.579
2002	203,733	86.810	2011	241,111	124.001
2003	206,568	90.425	2012	247,783	126.465

a. Calculate 2012 constant dollars for the expenditures.

b. Calculate 1995 constant dollars for the expenditures.

c. Create a line graph displaying the nominal dollars, 2012 constant dollars, and 1995 constant dollars across all years of data.

d. Based on the data provided and the calculations you have completed above, does the Public Works Department's request make sense? How much additional funding do you think it might need?

Reference no: EM132199616

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