At the beginning of 2006 the CPI was 216.2.At the beginning of 2007,it was 225.1.What was the rate of inflation in 2006?
A)4.9 percent.
B)4.1 percent.
C)3.6 percent.
D)8.9 percent.

Question

Quizplus · Accepted Answer

To find the rate of inflation in 2006, we need to use the formula:

Inflation rate = (CPI at end of period - CPI at beginning of period) / CPI at beginning of period x 100

Using the given data, we get:

Inflation rate for 2006 = (225.1 - 216.2) / 216.2 x 100 = 4.1 percent

Therefore, the correct answer is B) 4.1 percent.

At the Beginning of 2006 the CPI Was 216