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Zolol [24]
1 year ago
6

The price index was 128 in 2013, and the inflation rate was 24 percent between 2012 and 2013. The price index in 2012 was Select

one: a. 158.7. b. 104.0. c. 152.0. d. 103.2.
Mathematics
1 answer:
schepotkina [342]1 year ago
4 0

Answer:  d. 103.2.

Step-by-step explanation:

Formula for inflation rate = \dfrac{PI_2-PI_1}{PI_1}\times100

, where PI_1  = Price index in first period

PI_2 = Price index in second period.

As per given , we have

The inflation rate between 2012 and 2013= 24%

The price index was 128 in 2013.

i.e. PI_2=128

Let x be the price index in 2012

Then, we have

\dfrac{128-x}{x}\times100=24   [Substitute all values in formula]

128-x=0.24x\\\\ 0.24x+x=128\\\\ 1.24x= 128\\\\ x=\dfrac{128}{1.24}\approx103.2

Hence, the  price index in 2012 was 103.2.

So , the correct option is d. 103.2.

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