A representative market basket of products cost $250 at the beginning of the year, and the same collection of products costs $280 at the end of the year.What is the annual rate of inflation?
A)10.7%
B)12%
C)112%
D)-10.7%

Question

Quizplus · Accepted Answer

The annual rate of inflation is calculated by the formula [(New Price - Old Price) / Old Price] * 100. So, [(280 - 250) / 250] * 100 = 12%.

A Representative Market Basket of Products Cost $250 at the Beginning