Question

A consumer survey conducted in two consecutive years found that a fixed basket of goods and services cost $36.00 in year 1 and $36.75 in year 2. The rate of inflation from year 1 to year 2 is

Answer 1

Answer:

0.021/yr or 2.1%/yr

Step-by-step explanation:

Find the quotient:

$36.75/$36.00

This comes out to 1.021,

so the inflation rate is 1.021 - 1.000 = 0.021  or  2.1%/year