Personal Finance 1st Edition by Jack R. Kapoor

Exercise 16

Determining the Inflation Rate. In 2006, selected automobiles had an average cost of $16,000. The average cost of those same automobiles is now $28,000. What was the rate of increase for these automobiles between the two time periods?

Step 1 of 3

Compute the inflation rate:

The inflation rate is the rise in the prices of goods and services.

The price in 2006 is $16,000 and now it is $28,000.

The number of years between 2006 and now is 2yrs.