Monthly expenditures for a family of 4 in 2017 averaged $1,400.In 2018,the cost of the same purchases was $1,500.If 2017 is the base year,what was the CPI in 2018?
A)110
B)107
C)100
D)93

Question

Quizplus · Accepted Answer

To calculate the CPI in 2018 we use the formula:
CPI in 2018 = (Cost of basket in 2018 / Cost of basket in base year) x 100
Cost of basket in 2018 = $1,500
Cost of basket in base year (2017) = $1,400
CPI in 2018 = (1500/1400) x 100 = 107.14
Rounding off to the nearest whole number gives CPI in 2018 as 107.

Monthly Expenditures for a Family of 4 in 2017 Averaged