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Price of X in 2000: 40

Price of Y in 2000: 89

Price of X in 2001: 56

Price of Y in 2001: 88

Price of X in 2002: 45

Price of Y in 2002: 30

The base year is

2002

The representative basket of consumer goods is 63 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: 15%

Nominal interest rate in 2002: 23%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 165.32887402453

CPI in 2001: 186.57748049052

CPI in 2002: 100

Inflation in 2001: 12.852326365475%

Inflation in 2002: -46.402963671128%

Real interest rate in 2001: 1.9030831739962%

Real interest rate in 2002: 129.49030100334%