Suppose the CPI is 200 in one year and 206 in the next year.What is the approximate annual rate of inflation as measured by the CPI?

Question

Quizplus · Accepted Answer

To find the annual rate of inflation, we use the formula: 
((CPI in year 2 - CPI in year 1) / CPI in year 1) x 100 
Substituting the given values, we get: 
((206 - 200) / 200) x 100 = 3% 
Therefore, the approximate annual rate of inflation as measured by the CPI is 3 percent.

Suppose the CPI Is 200 in One Year and 206