If the CPI is 220 one year and 210 the next,the annual rate of inflation as measured by the CPI is approximately
A)-2.3 percent
B)-4.6 percent
C)10 percent
D)4.8 percent
E)220 percent

Question

Quizplus · Accepted Answer

The annual rate of inflation is calculated as ((CPI in the second year - CPI in the first year) / CPI in the first year) * 100. So, ((210 - 220) / 220) * 100 = -4.55%, which is approximately -4.6%.

If the CPI Is 220 One Year and 210 the Next,the