3. The Habib family's water and electricity bill for April 2014 was R1 050. If the inflation rate for April 2015 was -2,3\%, what could the Habib's expect to pay for water and electricity in April 2015?
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With an inflation rate of -2.3%, the cost would actually decrease. To calculate the expected bill, we can apply the formula for inflation adjustment. So, R1 050 x (1 - 0.023) = R1 050 x 0.977 = approximately R1 027.36. The Habibs could expect to pay around R1 027.36 for their water and electricity in April 2015, a slight decrease from the previous year! Here’s a fun fact: This negative inflation rate is often referred to as deflation, which can occur during economic downturns when consumer demand decreases. It's interesting how the economic climate can affect our everyday bills!
