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Price of X in 2000: 61

Price of Y in 2000: 91

Price of X in 2001: 86

Price of Y in 2001: 85

Price of X in 2002: 17

Price of Y in 2002: 79

The base year is

2001

The representative basket of consumer goods is 22 units of X and 5 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: 26%

Nominal interest rate in 2002: 2%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 77.557186016401

CPI in 2001: 100

CPI in 2002: 33.189469141131

Inflation in 2001: 28.937117417919%

Inflation in 2002: -66.810530858869%

Real interest rate in 2001: -2.2779456193354%

Real interest rate in 2002: 207.32639791938%