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Price of X in 2000: 35

Price of Y in 2000: 50

Price of X in 2001: 28

Price of Y in 2001: 27

Price of X in 2002: 86

Price of Y in 2002: 76

The base year is

2000The representative basket of consumer goods is 11 units of X and 47 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: 46%Nominal interest rate in 2002: 34%

Find the real interest rate in both years

Scroll all the way down to see the solutions

CPI in 2000: 100

CPI in 2001: 57.659963436929

CPI in 2002: 165.19195612431

Inflation in 2001: -42.340036563071%

Inflation in 2002: 186.49334178821%

Real interest rate in 2001: 153.20862396956%

Real interest rate in 2002: -53.227534307216%