If the CPI at the end of 2003 was 124 and at the end of 2004 it was 130, the annual rate of inflation in
2004 was 6 percent.

Name: If the CPI at the end of 2003 was 124 and at the end of 2004 it was 130, the annual rate of inflation in 2004 was 6 percent.
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Quizplus · Accepted Answer

The annual rate of inflation is calculated as the percentage change in the CPI from one year to the next. The calculation for the given data is $\frac{(130 - 124)}{124} \times 100 = 4.84\%$, not 6%.

If the CPI at the End of 2003 Was 124