If the CPI this year is 220 and was 200 in last year, the annual inflation rate between the two years is
A) 5 percent.
B) 10 percent.
C) 20 percent.
D) 2 percent.

Name: If the CPI this year is 220 and was 200 in last year, the annual inflation rate between the two years is A) 5 percent. B) 10 percent. C) 20 percent. D) 2 percent.
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Question

Quizplus · Accepted Answer

The annual inflation rate is calculated as [(Current Year CPI - Previous Year CPI) / Previous Year CPI] * 100. Therefore, [(220 - 200) / 200] * 100 = 10 percent.

If the CPI This Year Is 220 and Was 200