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Price of X in 2000: 14

Price of Y in 2000: 86

Price of X in 2001: 14

Price of Y in 2001: 87

Price of X in 2002: 6

Price of Y in 2002: 39

The base year is

2002

The representative basket of consumer goods is 32 units of X and 32 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: 16%

Nominal interest rate in 2002: 37%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 222.22222222222

CPI in 2001: 224.44444444444

CPI in 2002: 100

Inflation in 2001: 1%

Inflation in 2002: -55.445544554455%

Real interest rate in 2001: 14.851485148515%

Real interest rate in 2002: 207.48888888889%