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Price of X in 2000: 28

Price of Y in 2000: 12

Price of X in 2001: 15

Price of Y in 2001: 4

Price of X in 2002: 59

Price of Y in 2002: 75

The base year is

2002

The representative basket of consumer goods is 82 units of X and 76 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: 74%

Nominal interest rate in 2002: 40%

Find the real interest rate in both years



Scroll all the way down to see the solutions

















































CPI in 2000: 30.4422091478

CPI in 2001: 14.5568419055

CPI in 2002: 100

Inflation in 2001: -52.1820448878%

Inflation in 2002: 586.962190352%

Real interest rate in 2001: 263.880052151%

Real interest rate in 2002: -79.6204213323%