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Price of X in 2000: 13

Price of Y in 2000: 50

Price of X in 2001: 7

Price of Y in 2001: 97

Price of X in 2002: 58

Price of Y in 2002: 68

The base year is

2002

The representative basket of consumer goods is 39 units of X and 4 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: 18%

Nominal interest rate in 2002: 83%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 27.900552486188

CPI in 2001: 26.085240726125

CPI in 2002: 100

Inflation in 2001: -6.5063649222065%

Inflation in 2002: 283.35854765507%

Real interest rate in 2001: 26.211800302572%

Real interest rate in 2002: -52.264009471192%