Weekly expenditures for a family of four in 2017 averaged $1 500. In 2018, the cost of the same purchases was $1 600. If 2017 is the base year, what was the CPI in 2018?
A)110
B)107
C)100
D)93

Question

Quizplus · Accepted Answer

To calculate the CPI, we need to use the formula:

CPI = (Cost of basket in current year / Cost of basket in base year) x 100

Using the given information, we can calculate the CPI as:

CPI = (1600 / 1500) x 100
CPI = 1.0667 x 100
CPI = 106.67

Rounding to the nearest whole number, the CPI in 2018 was 107. Therefore, the correct answer is option B.

Weekly Expenditures for a Family of Four in 2017 Averaged