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Price of X in 2000: 43

Price of Y in 2000: 33

Price of X in 2001: 8

Price of Y in 2001: 69

Price of X in 2002: 96

Price of Y in 2002: 95

The base year is

2000

The representative basket of consumer goods is 93 units of X and 95 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: 10%

Nominal interest rate in 2002: 35%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 100

CPI in 2001: 102.31286795627

CPI in 2002: 251.65405102327

Inflation in 2001: 2.3128679562658%

Inflation in 2002: 145.96520071243%

Real interest rate in 2001: 7.5133579942458%

Real interest rate in 2002: -45.114187043948%