calculate the inflation rate from year 1 to year 2 using the consumer price index.\nround to the nearest…

calculate the inflation rate from year 1 to year 2 using the consumer price index.\nround to the nearest tenth of a percent.

calculate the inflation rate from year 1 to year 2 using the consumer price index.\nround to the nearest tenth of a percent.

Answer

Explanation:

Step1: Calculate the total CPI in year 1

$1300 + 400+280 + 470+640+210+150+300=3750$

Step2: Calculate the total CPI in year 2

$1350 + 430+300 + 590+720+200+140+310=4040$

Step3: Calculate the inflation rate

The formula for inflation rate is $\text{Inflation Rate}=\frac{\text{CPI in year 2}-\text{CPI in year 1}}{\text{CPI in year 1}}\times 100%$. Substitute the values: $\frac{4040 - 3750}{3750}\times 100%=\frac{290}{3750}\times 100%$. $\frac{290}{3750}\times 100%=\frac{29000}{3750}% \approx 7.7%$

Answer:

$7.7$