MATHEMATICS COLLEGE

Inflation and Interest Rates: Tutorial22 of 25
Save & Exit
Question
Consider a simple economy where the basket of goods used to calculate the CPI contains two items shampoo and soap.
The basket consists of 1 bottle of shampoo and 2 bars of soap. The prices are shown in the table.
Year Price of a Bottle of Shampoo Price of a Bar of Soap
Year
36 50
$1.25
Year
$5.00
$1.30
Type the correct answer in the box. Round your answers to two decimal places, if necessary.
The CPI for year 2 is
Submit

Answers

Answer 1

Answer:

Answer:

2.22%

Step-by-step explanation:

Recall that year 1, the base year, has a CPI of 100.

From question 1, we know that the CPI of year 2 is 102.22.

To find the rate of inflation, find the percent change from year 1 to year 2:

102.22-100= 0.0222, or 2.22%

_________

100

Answer 2

Answer:

Final answer:

The CPI for year 2 can be calculated by finding the total cost of the basket of goods in year 2 and comparing it to the total cost in the base year.

The solution of CPI is 197.40

Explanation:

The CPI (Consumer Price Index) for year 2 can be calculated by first finding the total cost of the basket of goods in year 2 and then comparing it to the total cost in the base year.

In this case, the basket consists of 1 bottle of shampoo and 2 bars of soap.

The price of a bottle of shampoo in year 2 is $5.00 and the price of a bar of soap is $1.30.

So, the total cost of the basket in year 2 is (1 * $5.00) + (2 * $1.30) = $7.60.

Next, we need to find the total cost of the basket in the base year, which is given as $1.25 for a bottle of shampoo and $1.30 for a bar of soap.

So, the total cost in the base year is (1 * $1.25) + (2 * $1.30) = $3.85.

Finally, we can calculate the CPI for year 2 by dividing the total cost in year 2 by the total cost in the base year and multiplying by 100:

CPI = (Total cost in year 2 / Total cost in base year) * 100 = ($7.60 / $3.85) * 100 = 197.40 (rounded to two decimal places).

Learn more about Calculating CPI here:

brainly.com/question/33930591

#SPJ11

Related Questions

Christine is fertilizing her garden. the garden is in the shape of a rectangle. its length is 12 ft and it's width is 10 feet. suppose each bag of fertilizer covers 30 square feet. how many bags will she need to cover the garden?
Consider three boxes with numbered balls in them. Box A con- tains six balls numbered 1, . . . , 6. Box B contains twelve balls numbered 1, . . . , 12. Finally, box C contains four balls numbered 1, . . . , 4. One ball is selected from each urn uniformly at random. (a) What is the probability that the ball chosen from box A is labeled 1 if exactly two balls numbered 1 were selected(b) What is the probability that the ball chosen from box B is 12 if the arithmetic mean of the three balls selected is exactly 7?
An elevator is on Level 3, which is 45.25 metersabove the ground. It travels to the basementlevel, which is 10.42 meters underground.What is the total distance, in meters, that theelevator traveled?Enter your answer as a decimal in the box.
A sample survey contacted an SRS of 2854 registered voters shortly before the 2012 presidential election and asked respondents whom they planned to vote for. Election results show that 51% of registered voters voted for Barack Obama. We will see later that in this situation the proportion of the sample who planned to vote for Barack Obama (call this proportion V) has approximately the Normal distribution with mean μ 0.52 and standard deviation σ = 0.009. (a) If the respondents answer truthfully, what is P (0.5くV < 0.54)? This is the probability that the sample proportion v estimates the population proportion 0.52 within plus or minus 0.02. P (0.5<= V <=0.54) (±0.0001)= (b) In fact, 50% of the respondents said they planned to vote for Barack Obama V = 0.5. If respondents answer truthfully, What is P(V <=0.5)? P (V <=0.5) (±0.0001) =
Abeer sat a French test and a German test.In the French test she scored 34 out of 50.In the German test she scored 14 out of 20.NIn which test did she do better?You must show your working.

Who got the answer to this ?
(4x^2+6+7)-(-8x^2-2x+6)

Answers

Answer:

12x^2+2x+7

Step-by-step explanation:

Distribute the Negative Sign:

=4x^2+6+7+−1(−8x^2−2x+6)

=4x^2+6+7+−1(−8x^2)+−1(−2x)+(−1)(6)

=4x^2+6+7+8x^2+2x+−6

Combine Like Terms:

=4x^2+6+7+8x^2+2x+−6

=(4x^2+8x^2)+(2x)+(6+7+−6)

=12x^2+2x+7

Jacqueline buys 2 fourths yard of green ribbon and 1 fourths yard of pink ribbon. How many yards of ribbon does she buy?

Answers

Answer:

3/4

Step-by-step explanation:

15 points
grade 7 math

Answers

B ! It’s the highest number count !

Rylen hiked 3/4 of a mile in 2/3 of an hour . What was his hiking speed in miles per hour?1/8 miles per hour

1 1/8 miles per hour

8/9 miles per hour

1 5/12 miles per hour

Answers

Answer:

The hiking speed in miles per hour is 1 1/8.

Step-by-step explanation:

This can be solved by a simple rule of three.

In a rule of three problem, the first step is identifying the measures and how they are related, if their relationship is direct of inverse.

When the relationship between the measures is direct, as the value of one measure increases, the value of the other measure is going to increase too.

When the relationship between the measures is inverse, as the value of one measure increases, the value of the other measure will decrease.

In this problem, the measures are the time spent hiking and the distance hiked. As the the time spent hiking increases, so will the distance hiked. So their relationship is direct.

So:

3/4 - 2/3 hour

x miles - 1 hour

$(2x)/(3) = (3)/(4)$