If the consumer price index is 105 in Year One and 110 in Year Two, what is the rate of inflation from Year One to Year Two?
4.5%
4.8%
0.05%
-4.8%
4.8%
110/105 = 1.0476
so yes about 4.8 %
Exactly, that's the correct calculation for finding the rate of inflation from Year One to Year Two based on the given information.
To calculate the rate of inflation, you need to determine the percentage change in the Consumer Price Index (CPI) from Year One to Year Two. The formula to calculate the rate of inflation is:
Rate of inflation = ((CPI in Year Two - CPI in Year One) / CPI in Year One) * 100
Using the given CPI values, we can calculate the rate of inflation:
Rate of inflation = ((110 - 105) / 105) * 100
Rate of inflation = (5 / 105) * 100
Rate of inflation = 0.0476 * 100
Rate of inflation ≈ 4.76%
Therefore, the correct answer is not given in the options provided. The rate of inflation from Year One to Year Two is approximately 4.76%.