Monthly expenditures for a family of 4 in 2015 averaged $1,400.In 2016,the cost of the same purchases was $1,500.If 2015 is the base year,what was the CPI in 2016?
A)110
B)107
C)100
D)93

Question

Quizplus · Accepted Answer

To find the CPI in 2016, we need to divide the cost of the same purchases in 2016 by the cost of the same purchases in 2015 and then multiply by 100.

CPI = (2016 cost / 2015 cost) x 100

CPI = (1500 / 1400) x 100

CPI = 107.14

Rounding to the nearest whole number, the CPI in 2016 was 107. Therefore, the answer is B.

Monthly Expenditures for a Family of 4 in 2015 Averaged