If the Consumer Price Index was 110 in one year and 117 in the next year, the rate of inflation from one year to the next was
a)3.5% b)4.7% c)6.4% d)7.1%
percent=(117-110)/110 x 100
~6.36%
To calculate the rate of inflation, you can use the following formula:
Inflation Rate = (CPI Year 2 - CPI Year 1) / CPI Year 1 * 100
Let's substitute the given values into the formula:
Inflation Rate = (117 - 110) / 110 * 100
Inflation Rate = 7 / 110 * 100
Inflation Rate ≈ 6.36
The rate of inflation from one year to the next is approximately 6.36%. Therefore, the closest option is c) 6.4%.
To calculate the rate of inflation, you need to find the percentage increase between the two Consumer Price Index (CPI) values.
Here's how to calculate it:
Step 1: Find the difference between the two CPI values.
117 - 110 = 7
Step 2: Calculate the percentage increase by dividing the difference by the initial CPI and then multiplying by 100.
(7 / 110) * 100 = 6.36
Round this to one decimal place: 6.4
Therefore, the rate of inflation from one year to the next is 6.4%.
So, the correct answer is option c) 6.4%.