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Suppose prices changed from one year to the next as shown in columns 3 and 4 of the following table. Fill in the rest of the table to calculate the average inflation rate. Instructions:
1. Calculate the total budget for this year and last year. Enter to the nearest whole number.
2. Using the formula, ((new price - old price)/old price), calculate the percentage change in price. Include a minus sign (-) if the percentage change in price is falling.
3. Calculate the item weight from last year to the nearest three decimal places.
4. Calculate the inflation impact by multiplying the percentage change in price by the item weight. Round your answer to the nearest two decimal places in percent form. Include a minus sign (-) if the change is negative. Weights are in decimals, not %.
5. Calculate the average inflation rate to two decimal points.
6. All $ values can be to the nearest whole dollar.
Item
Quantity
Unit Price Last Year
Unit Price This Year
Total Last Year
Total This Year
% Change in Price
Last Year Item Weight
Inflation Impact
Coffee
20 pounds
$6
$8
$
%
Tuition
1 year
4,000
5,000
Pizza
150 pizzas
10
12
Cable TV
12 months
30
36
Vacation
1 week
250
300
Total Budget
Average inflation: %
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