The price index was 105 in Year 1 and 108 in Year 2. What was the inflation rate?
A)2.9 percent
B)0.029 percent
C)-2.9 percent
D)102.9 percent

Name: The price index was 105 in Year 1 and 108 in Year 2. What was the inflation rate? A)2.9 percent B)0.029 percent C)-2.9 percent D)102.9 percent
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Question

Quizplus · Accepted Answer

The inflation rate is calculated as ((Year 2 index - Year 1 index) / Year 1 index) * 100 = ((108 - 105) / 105) * 100 = 2.857, which rounds to 2.9 percent.

The Price Index Was 105 in Year 1 and 108