If the CPI was 128 at the end of 2011 and 136 and the end of 2012,what was the inflation rate in 2012?
A)4.2 percent
B)5.9 percent
C)6.25 percent
D)8 percent
E)9.4 percent

Question

Quizplus · Accepted Answer

To find the inflation rate, we use the formula: 
Inflation rate = [(CPI at end of year 2 - CPI at end of year 1) / CPI at end of year 1] x 100%
So, substituting the values: 
Inflation rate = [(136-128)/128] x 100%
Inflation rate = (8/128) x 100%
Inflation rate = 6.25%
Therefore, the answer is C) 6.25 percent.

If the CPI Was 128 at the End of 2011