Suppose You Know the Value of the Consumer Price Index $$\text { CPI in year } 1 = \frac { 100 \times \text { CPI in year } 2 } { \text { Inflation rate in year } 2 \times 100 }$$

Suppose you know the value of the consumer price index (CPI) in year 2 as well as the inflation rate in year 2. Which of the following equations is valid for the CPI in year 1?

A)
$$\text { CPI in year } 1 = \frac { 100 \times \text { CPI in year } 2 } { \text { Inflation rate in year } 2 \times 100 }$$

B)
$\text { CPI in year } 1 = \frac { 100 + \text { CPI in year } 2 } { \text { Inflation rate in year } 2 + 100 }$

C)
$$\text { CPI in year } 1 = \frac { 100 \times \text { CPI in year } 2 } { \text { Inflation rate in year } 2 + 100 }$$

D)
$$\mathrm { CPI } \text { in year } 1 = \frac { \text { CPI in year } 2 \div 100 } { \text { Inflation rate in year } 2 + 100 }$$