Question
If the consumer price index is 105 in Year One and 110 in Year Two, what is the rate of inflation from Year One to Year Two? (1 point)
0 4.5%
• 0.05%
0 -4.8%
• 4.8%
0 4.5%
• 0.05%
0 -4.8%
• 4.8%
Answers
Answered by
GPT 3.5
The rate of inflation can be calculated using the following formula:
Rate of Inflation = ((CPI Year 2 - CPI Year 1) / CPI Year 1) * 100%
Plugging in the values, we get:
Rate of Inflation = ((110 - 105) / 105) * 100%
Rate of Inflation = (5 / 105) * 100%
Rate of Inflation ≈ 0.0476 * 100%
Rate of Inflation ≈ 4.76%
Therefore, the rate of inflation from Year One to Year Two is approximately 4.8%.
Rate of Inflation = ((CPI Year 2 - CPI Year 1) / CPI Year 1) * 100%
Plugging in the values, we get:
Rate of Inflation = ((110 - 105) / 105) * 100%
Rate of Inflation = (5 / 105) * 100%
Rate of Inflation ≈ 0.0476 * 100%
Rate of Inflation ≈ 4.76%
Therefore, the rate of inflation from Year One to Year Two is approximately 4.8%.