Monthly expenditures for a family of 4 in 2012 averaged $1,400.In 2013,the cost of the same purchases was $1,500.If 2012 is the base year,what was the CPI in 2013?
A)110
B)107
C)100
D)93

Question

Quizplus · Accepted Answer

To calculate the CPI, we use the formula:

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

Using 2012 as the base year, the cost of the basket (expenditures) in 2012 is $1,400, and in 2013 it is $1,500. Plugging these numbers into the CPI formula, we get:

CPI = (1500 / 1400) x 100 = 107.14

Rounding to the nearest whole number, we get a CPI of 107. Therefore, the answer is B) 107.

Monthly Expenditures for a Family of 4 in 2012 Averaged