The price index was 136 in one year and 142 in the next year.What was the inflation rate between the two years?
A)1.04 percent
B)4.41 percent
C)6.00 percent
D)42.00 percent

Question

Quizplus · Accepted Answer

The formula to calculate inflation rate is:
Inflation Rate = ((New Price Index - Old Price Index)/Old Price Index) x 100

In this case, the old price index is 136 and the new price index is 142.
So, Inflation Rate = ((142-136)/136) x 100 = 4.41%
Therefore, the answer is B, 4.41 percent.

The Price Index Was 136 in One Year and 142