Reference no: EM131400507

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: %