If the CPI in the United States was 150 in 2003 and 160 in 2004,the inflation rate over the year is _____.
A)10 percent
B)20 percent
C)7 percent
D)30 percent
E)50 percent

Question

Quizplus · Accepted Answer

To calculate the inflation rate, we use the formula: 
[(CPI in current year - CPI in previous year) / CPI in previous year] x 100

Using the given information, we get: 
[(160 - 150) / 150] x 100 = 6.67 ≈ 7%

Therefore, the answer is C) 7 percent.

If the CPI in the United States Was 150 in 2003