ection 5.7 dels Practice K CPI = CPIO 1 + Question 9, 5.7.69 Part 1 of 2 T 100 HW Score: 66.67%, 6 of 9 points Points: 0 of 1 The Consumer Price Index (CPI) indicates the relative change in price over time for a fixed basket of goods and services. In general, if the rate of inflation averages r% over n years, then the CPI after n years is n Save where CPI is the CPI index at the beginning of the n-year period. there CP , is the (a) The CPI was 151.3 for 1995 and 166.2 for 1999. Assuming that annual inflation remained constant for this time period, determine the average annual inflation rate. (b) Using the inflation rate from part (a), in what year will the CPI reach 341?

The Consumer Price Index (CPI) indicates the relative change in price over time for a fixed basket of goods and services: In genetal, if the rate of inflation averages r\% over n years, then the CPI after n yoars is CPI=CPI0(1+100r)n, where CPl0 is the CP index at the beginning of the n-year period: (a) The CPI was 151.3 for 1995 and 166.2 for 1999 . Assuming that annual inflation remained constant for this time period, determine the average annual inflation rate. (b) Using the inflation rate from part (a), in what year will the CPI reach 341