Answer:
The capital gain of the TIPS in dollars is $27.69
Explanation:
Given
CPI = 200.5 (Beginning of the Year)
CPI = 195.4 (End of the year)
% = 2.75
CPI Reference = 184.2
CPI Reference of 184.2 = $1,000 rate
Capital Gain is calculated by the difference in value at the end of the year value and at the beginning of the year.
End of the year value = 200.5/184.2 * ($1000)
End of the year value = $1088.49
Beginning of the year value =
= 195.4/184.2 * ($1,000)
Beginning of the year value = $1060.80
Capital Gain =$1,088.49 - $1,060.80
Capital Gain = $27.69
