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How to create a medical care cost inflation index to use in evaluating certain items in the state budget. You are to use 2013 as the base year (2013=100.0) for your index. If costs have risen at an average annual rate of 4.35 percent in recent years and the budget director believes that this rate of 4.25 percent in recent years and the budget director believes that this rate will continue,what is the value of your index in 2018?
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