The price index was 128 in 2013,and the inflation rate was 24 percent between 2012 and 2013.The price index in 2012 was
A)104.0.
B)103.2.
C)158.7.
D)152.0.

Question

Quizplus · Accepted Answer

Let the price index in 2012 be x.

From the given information, we know that:

Price index in 2013 = 128 
Inflation rate from 2012 to 2013 = 24%

Using the formula for inflation rate:

Inflation rate = [(Price index in 2013 - Price index in 2012)/ Price index in 2012] x 100

Substituting the given values, we get:

24% = [(128-x)/x] x 100

Simplifying and solving for x:

120x = 128^2 - 24x

144x = 128^2

x = 103.2

Therefore, the price index in 2012 was 103.2, which corresponds to choice B.

The Price Index Was 128 in 2013,and the Inflation Rate