secondary 4 chevron_right E Maths chevron_right Singapore

Hi I really don’t understand question 2’s answers that r in green i don’t understand the logic behind the workings like why does it say price end of 2007 over price of 2005 but the numerical working says 1.1554 times hundred percent it does not reciprocate the working in the words can someone explain to me the answers in a simplified n detailed manner thank you so much!