A sports club charges an annual membership fee of £320. The club raises the fee each year in line with inflation. Inflation is 2.5% in the first year and 4% in the second year.
Calculate the membership fee after the second year, giving your answer to the nearest penny.
62 exam-style questions on OCR GCSE Economics 3.4 Price stability, covering 3.4.1 Price stability and inflation, 3.4.2 Measuring inflation with CPI, 3.4.3 Calculate the effect of inflation, 3.4.4 Analyse inflation figures, and 3.4.5 Causes and consequences of inflation. Each one has a worked solution and a mark scheme showing where the marks go.