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Sunny_sXe [5.5K]
4 years ago
7

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 prac

tice. She spent $155 last year for gas. This year she spent $195. Disregarding other factors, what is the inflation rate?
Mathematics
1 answer:
Kisachek [45]4 years ago
4 0

Answer:

25.8%

Step-by-step explanation:

We have been given that Amy spent $155 last year for gas. This year she spent $195. We are asked to find the inflation rate.

We will use inflation rate formula to solve our given problem.

\text{Inflation rate}=\frac{\text{CPI}_{x+1}-\text{CPI}_{x}}{\text{CPI}_{x}}\times 100

\text{Inflation rate}=\frac{195-155}{155}\times 100

\text{Inflation rate}=\frac{40}{155}\times 100

\text{Inflation rate}=0.2580645161290323\times 100

\text{Inflation rate}=25.80645161290323\\\\\text{Inflation rate}\approx 25.8

Therefore, the inflation rate is approximately 25.8%.

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