1) Given the following data, calculate the annual rate of consumer price inflation in 2015 in each of the following situations: a) CPI = 200 in 2015 & 240 in 2016 b) CPI = 150 in 2015 & 175 in 2016 c) CPI =325 in 2015 & 340 in 2016 d) CPI= 325 in 2015 & 315 in 2016
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The formula to calculate the annual rate of inflation is: \[ \text{Inflation Rate} = \left( \frac{\text{CPI in 2016} - \text{CPI in 2015}}{\text{CPI in 2015}} \right) \times 100 \] Show more…
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