The price index was 92 in 2014,and the inflation rate was 8.7 percent between 2013 and 2014.The price index in 2013 was
A)100.0.
B)100.7.
C)83.3.
D)84.6.

Question

Quizplus · Accepted Answer

Let X be the price index in 2013.

From the given information:

Price index in 2014 = 92

Inflation rate from 2013 to 2014 = 8.7% = 0.087

Using the formula for inflation rate:

Price index in 2014 = (1 + inflation rate) * Price index in 2013

92 = (1 + 0.087) * X

X = 84.6

Therefore, the price index in 2013 was 84.6.

The answer is D.

The Price Index Was 92 in 2014,and the Inflation Rate