Compute the real rate of change in the price of coffee

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Reference no: EM131533307

Year CPI

2000 515.8

2001 530.4

2002 538.8

2003 551.1

2004 565.8

2005 585.0

2008 645.0

2009 642.7

2010 653.2

2016 719.0

1. The average price of a cup of coffee went from $2.15 in 2005 to $2.50 in 2010. Compute the real rate of change in the price of coffee.

2. The starting salary for finance grads increased from $40,000 in 2000 to $60,000 in 2016. What was the annualized real rate of change in the starting salary?

Reference no: EM131533307

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