Refer to the following in doing Exercises 63 and 64. From Table 21.5 (page 892), you can determine the average rate of inflation from one year to another. For example, you find the inflation from 1990 to 2000 by subtracting the two index numbers and dividing by the earlier one: . However, the average rate of inflation is not this number divided by the number of years (10). We must take into account compounding of the rate of inflation. We set and find .