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Price of X in 2000: 42

Price of Y in 2000: 69

Price of X in 2001: 58

Price of Y in 2001: 76

Price of X in 2002: 15

Price of Y in 2002: 24

The base year is

2001

The representative basket of consumer goods is 57 units of X and 82 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: 86%

Nominal interest rate in 2002: 70%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 84.420213881317

CPI in 2001: 100

CPI in 2002: 29.597399874187

Inflation in 2001: 18.455042225534%

Inflation in 2002: -70.402600125813%

Real interest rate in 2001: 57.021597819249%

Real interest rate in 2002: 474.37477860432%