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Price of X in 2000: 100

Price of Y in 2000: 25

Price of X in 2001: 28

Price of Y in 2001: 36

Price of X in 2002: 81

Price of Y in 2002: 77

The base year is

2000

The representative basket of consumer goods is 43 units of X and 71 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: 97%

Nominal interest rate in 2002: 5%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 100

CPI in 2001: 61.893004115226

CPI in 2002: 147.32510288066

Inflation in 2001: -38.106995884774%

Inflation in 2002: 138.03191489362%

Real interest rate in 2001: 218.29122340426%

Real interest rate in 2002: -55.888268156425%