The price index was 220 in one year and 260 in the next year. What was the inflation rate?

Name: The price index was 220 in one year and 260 in the next year. What was the inflation rate?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To calculate the inflation rate, we use the formula:

inflation rate = (new price index - old price index) / old price index * 100

Plugging in the numbers, we get:

inflation rate = (260 - 220) / 220 * 100
inflation rate = 40 / 220 * 100
inflation rate = 18.2%

Therefore, the correct answer is choice C.

The Price Index Was 220 in One Year and 260