Amy, a senior, bought a car last year so that she could drive to school on the days when she needed to stay after class for practice. She spent $155 last year for gas. This year she spent $195. Disregarding other factors, what is the inflation rate?
25.8%
To calculate the inflation rate, you need to determine the percentage increase in the cost of gas from last year to this year. This can be done using the following formula:
Inflation Rate = ((New Value - Old Value) / Old Value) * 100
In this case, the old value is the cost of gas last year, which is $155, and the new value is the cost of gas this year, which is $195.
Plugging these values into the formula:
Inflation Rate = (($195 - $155) / $155) * 100
Simplifying the expression inside the parentheses:
Inflation Rate = ($40 / $155) * 100
Dividing the numerator by the denominator:
Inflation Rate = 0.258 * 100
Multiplying the result by 100:
Inflation Rate = 25.8%
Therefore, the inflation rate, disregarding other factors, is 25.8%.