if the consumer price index is 105 and your one and 110 in year two what is the inflation from year one to year two?
A) .05%
B) 4.8%
C) -4.8
D) 4.5%
D) 4.5%
To calculate the inflation rate, you can use the following formula:
Inflation rate = ((CPI in year 2 - CPI in year 1) / CPI in year 1) x 100
Using the given numbers, we get:
Inflation rate = ((110 - 105) / 105) x 100
Inflation rate = (5 / 105) x 100
Inflation rate = 0.0476 or 4.76%
Rounding to one decimal place gives us an answer of 4.5%, which is closest to choice D.
To calculate the inflation from year one to year two, you can use the following formula:
Inflation Rate = ((CPI Year 2 - CPI Year 1) / CPI Year 1) * 100
Given that the CPI in year one is 105 and the CPI in year two is 110, let's substitute these values into the formula:
Inflation Rate = ((110 - 105) / 105) * 100
Calculating this expression:
Inflation Rate = (5 / 105) * 100
Simplifying:
Inflation Rate ≈ 0.0476 * 100 ≈ 4.76%
Rounded to the nearest tenth, the inflation from year one to year two is approximately 4.8%. Therefore, the correct answer is B) 4.8%.
To calculate the inflation from year one to year two, you can use the formula:
Inflation rate = ((CPI in year two - CPI in year one) / CPI in year one) * 100
Let's apply this formula to the given values:
CPI in year one = 105
CPI in year two = 110
Plugging these values into the formula:
Inflation rate = ((110 - 105) / 105) * 100
= (5 / 105) * 100
≈ 0.0476 * 100
≈ 4.76%
So, the inflation from year one to year two is approximately 4.76%.
However, none of the provided answer options match this calculation exactly. The closest option is B) 4.8%, which is rounded to one decimal place.