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Price of X in 2000: 86

Price of Y in 2000: 97

Price of X in 2001: 39

Price of Y in 2001: 57

Price of X in 2002: 70

Price of Y in 2002: 67

The base year is

2000The representative basket of consumer goods is 65 units of X and 55 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: 41%Nominal interest rate in 2002: 44%

Find the real interest rate in both years

Scroll all the way down to see the solutions

CPI in 2000: 100

CPI in 2001: 51.8993135011

CPI in 2002: 75.3775743707

Inflation in 2001: -48.1006864989%

Inflation in 2002: 45.2380952381%

Real interest rate in 2001: 171.67989418%

Real interest rate in 2002: -0.852459016393%