Question

The CPI basket price for two consecutive years of five different economies are given. Determine the rate of Inflation for each economy. Then
order the tiles from least to greatest Inflation rate.
Year 1 = $132.00
Year 2 = $134.50
Year 1 = $95.00
Year 2 = $97.50
Year 1 $100.00
Year 2 = $102.00
Year 1 = $88.00
Year 2 = $89.25
Year 1 = $115.50
Year 2 = $117.50
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Answer 1

Answer:

The inglation rate can be calculated as:

R = ((year2 - year1)/year1 )*100%

A)

Year 1 = $132.00

Year 2 = $134.50

R = (($134.50 - $132.00)/$132.00)*100% = 1.89%

B)

Year 1 = $95.00

Year 2 = $97.50

R = (($97.50 - $95.00 )/$95.00 )*100% = 2.6%

C)

 Year 1 = $100.00

 Year 2 = $102.00

R = (($102.00 - $100.00 )/$100.00 )*100% = 2%

D)

Year 1 = $88.00

Year 2 = $89.25

R = (($89.25 - $88.00 )/$88.00 )*100% = 1.4%

E)

Year 1 = $115.50

Year 2 = $117.50

R = (($117.50 - $115.50 )/$115.50 )*100% = 1.7%

Then the order from least to greatest is:

D, E, A, C, B