Monthly expenditures for a family of 4 in 2010 averaged $1,400.In 2011, the cost of the same purchases was $1,500.If 2010 is the base year, what was the CPI in 2011?
A)110
B)107
C)100
D)93
E)85

Question

Quizplus · Accepted Answer

To find the CPI, we need to use the formula:

CPI = (Cost of basket in current year / Cost of basket in base year) x 100

In this case, the cost of basket in the current year (2011) is $1,500, and the cost of basket in the base year (2010) is $1,400. So,

CPI = (1500 / 1400) x 100
    = 107.14

Rounding this to the nearest whole number, we get:

CPI = 107

Therefore, the answer is B) 107.

Monthly Expenditures for a Family of 4 in 2010 Averaged