Use the following to answer questions :
Table: The Consumer Price Index
-(Table: The Consumer Price Index) Look at the table The Consumer Price Index. The approximate rate of inflation in year 5 is:
A)25%.
B)10%.
C)19%.
D)20%.

Question

Use the following to answer questions :
Table: The Consumer Price Index 
-(Table: The Consumer Price Index) Look at the table The Consumer Price Index. The approximate rate of inflation in year 5 is:
A)25%. 
B)10%. 
C)19%. 
D)20%.

Quizplus · Accepted Answer

The rate of inflation is calculated by the formula: [(CPI in Year 5 - CPI in Year 4) / CPI in Year 4] * 100%. If the CPI increased by 20% from Year 4 to Year 5, the rate of inflation is 20%.

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