A certain country calculates inflation using a consumer price index (CPI). Between 2016 and 2017 the CPI increased from 200 to 220. What was the inflation rate between 2016 and 2017? 110% 10% 20 20%
Added by Wayne O.
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Inflation rate is calculated using the formula: \[ \text{Inflation Rate} = \left( \frac{\text{CPI in the later year} - \text{CPI in the earlier year}}{\text{CPI in the earlier year}} \right) \times 100\% \] Show more…
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Inflation The consumer price index (CPI) of a certain country is given by $$ I(t)=-0.02 t^{3}+0.4 t^{2}+120 \quad(0 \leq t \leq 4) $$ where $t=0$ corresponds to the beginning of $2013 .$ Find the annual percentage rate of inflation in the CPI of the country at the beginning of 2014 .
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The consumer price index (CPI) indicates the relative change in price over time for a fixed basket of goods and services. It is a cost-of-living index that helps measure the effect of inflation on the cost of goods and services. The CPI uses the base period 1982–1984 for comparison (the CPI for this period is 100). The CPI for March 2014 was 236.29. This means that $100 in the period 1982–1984 had the same purchasing power as $236.29 in March 2014. In general, if the rate of inflation averages r% per annum over n years, then the CPI index after n years is $$ \mathrm{CPI}=\mathrm{CPI}_{0}\left(1+\frac{r}{100}\right)^{n} $$ where $C P I_{0}$ is the CPI index at the beginning of the n-year period. If the current CPI is 234.2 and the average annual inflation rate is 2.8%, what will be the CPI in 5 years?
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