What is the cost index value of copper at the end of Year 2?

The following question requires your selection of CCC/CCE Scenario 4 (2.7.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

What is the cost index value of copper at the end of Year 2? (rounded to 2 decimal positions)
A . 4.62
B . 4.24
C . 4.10
D . 4.31

View Answer

Answer: D

Explanation:

Year 1 Index=4.20×(1+0.01)=4.242 Year 2 Index=4.242×(1+0.015)≈4.305text{Year 2 Index} = 4.242 times (1 + 0.015) approx 4.305Year 2 Index=4.242×(1+0.015)≈4.305

Rounding to two decimal places: Year 2 Index≈4.31text{Year 2 Index} approx 4.31Year 2 Index≈4.31

D. 4.31