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Price of X in 2000: 30

Price of Y in 2000: 45

Price of X in 2001: 100

Price of Y in 2001: 34

Price of X in 2002: 76

Price of Y in 2002: 48

The base year is

2000The representative basket of consumer goods is 17 units of X and 40 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: 88%Nominal interest rate in 2002: 59%

Find the real interest rate in both years

Scroll all the way down to see the solutions

CPI in 2000: 100

CPI in 2001: 132.467532468

CPI in 2002: 139.047619048

Inflation in 2001: 32.4675324675%

Inflation in 2002: 4.96732026144%

Real interest rate in 2001: 41.9215686275%

Real interest rate in 2002: 51.4757160648%