If the CPI at the end of last year was 100 and the CPI at the end of this year was 115, the inflation rate was
A) 100 percent.
B) 115 percent.
C) 15 percent.
D) 1.5 percent.

Question

Quizplus · Accepted Answer

To calculate the inflation rate, we need to find the percentage increase in the CPI.

Inflation rate = ((CPI this year - CPI last year) / CPI last year) x 100%

Putting in the values, we get:

Inflation rate = ((115 - 100) / 100) x 100%
Inflation rate = (15 / 100) x 100%
Inflation rate = 15%

Therefore, the inflation rate was 15%. Answer choice C is correct.

If the CPI at the End of Last Year Was