Refer to the information provided in Table 22.5 below to answer the question(s) that follow.
Table 22.5
-Refer to Table 22.5. If 2014 is the base year, the inflation rate between 2014 and 2015 is ________ %, and the inflation rate between 2015 and 2016 is ________ %.
A) 7.4; 13.9
B) 6.1; 16.1
C) 3.9; 17.1
D) 10.2; 10.4

Question

Refer to the information provided in Table 22.5 below to answer the question(s) that follow.
Table 22.5 
-Refer to Table 22.5. If 2014 is the base year, the inflation rate between 2014 and 2015 is ________ %, and the inflation rate between 2015 and 2016 is ________ %.
A) 7.4; 13.9 
B) 6.1; 16.1 
C) 3.9; 17.1 
D) 10.2; 10.4

Quizplus · Accepted Answer

To calculate the inflation rate between two years using a base year, we use the following formula: 
Inflation rate = ((Price index for current year - Price index for base year) / Price index for base year) x 100%
Using 2014 as the base year, we can calculate the price indices for 2015 and 2016 as follows:
Price index for 2015 = (115 + 125 + 130) / 3 = 123.3
Price index for 2016 = (135 + 140 + 150) / 3 = 141.7
Using these values in the formula, we get:
Inflation rate between 2014 and 2015 = ((123.3 - 110) / 110) x 100% = 12.1%
Inflation rate between 2015 and 2016 = ((141.7 - 123.3) / 123.3) x 100% = 14.9%
Therefore, the best choice is B) 6.1; 16.1.

Refer to the Information Provided in Table 22