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Price of X in 2000: 36

Price of Y in 2000: 86

Price of X in 2001: 79

Price of Y in 2001: 26

Price of X in 2002: 94

Price of Y in 2002: 27

The base year is

2002

The representative basket of consumer goods is 92 units of X and 96 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: 27%

Nominal interest rate in 2002: 9%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 102.91814946619

CPI in 2001: 86.868327402135

CPI in 2002: 100

Inflation in 2001: -15.594744121715%

Inflation in 2002: 15.116755428103%

Real interest rate in 2001: 50.4645637034%

Real interest rate in 2002: -5.3135231316726%