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Price of X in 2000: 22

Price of Y in 2000: 73

Price of X in 2001: 93

Price of Y in 2001: 81

Price of X in 2002: 63

Price of Y in 2002: 18

The base year is

2000The representative basket of consumer goods is 49 units of X and 83 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: 95%Nominal interest rate in 2002: 26%

Find the real interest rate in both years

Scroll all the way down to see the solutions

CPI in 2000: 100

CPI in 2001: 158.04960067255

CPI in 2002: 64.186633039092

Inflation in 2001: 58.049600672551%

Inflation in 2002: -59.38829787234%

Real interest rate in 2001: 23.378989361702%

Real interest rate in 2002: 210.25540275049%