For an imaginary economy, the value of the consumer price index was 140 in 2013, and the inflation rate was 5.0 percent between

Question

3 years ago

5

2013 and 2014. The consumer price index in 2014 was?

1 answer:

slega [8] · Answer 1 · 2022-07-15T02:03:34+03:00

Answer:

147

Step-by-step explanation:

Value of consumer price index (2013) = 140

Inflation rate = 5%

Value of consumer price index (2014) =?

To find the value of consumer price index in 2014 we have to use inflation rate with the consumer price value of 2013.

Inflation =<em>Increase in value = Value of consumer price index in 2013 x Inflation rate </em>

Inflation = Increase in value = 140 x 5% = 7

Value of consumer price index (2014) = Consumer price index value in 2013 + Inflation

Value of consumer price index (2014) = 140 + 7

Value of consumer price index (2014) = 147