If the inﬂation rate was 5 per cent in 2010 and the price index was 120 in 2009, what was the value of the price index in 2010?
A) 124
B) 125
C) 126
D) 127

Name: If the inﬂation rate was 5 per cent in 2010 and the price index was 120 in 2009, what was the value of the price index in 2010? A) 124 B) 125 C) 126 D) 127
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Quizplus · Accepted Answer

The price index in 2010 can be calculated by increasing the 2009 index by 5%. So, 120 * 1.05 = 126.

If the Inﬂation Rate Was 5 Per Cent in 2010