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Price of X in 2000: 76

Price of Y in 2000: 93

Price of X in 2001: 40

Price of Y in 2001: 85

Price of X in 2002: 55

Price of Y in 2002: 20

The base year is

2001

The representative basket of consumer goods is 79 units of X and 80 units of Y.

Find the CPI for all 3 years.

Find the inflation rate in 2001 and 2002.

Extra problem (if you have completed Chapter 9):

Nominal interest rate in 2001: 31%

Nominal interest rate in 2002: 50%

Find the real interest rate in both years

Scroll all the way down to see the solutions

CPI in 2000: 134.97991967871

CPI in 2001: 100

CPI in 2002: 59.68875502008

Inflation in 2001: -25.914906277893%

Inflation in 2002: -40.31124497992%

Real interest rate in 2001: 76.823694779116%

Real interest rate in 2002: 151.30361648444%