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What was the annual rate of price increase

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Question - Inflation is a general increase in prices and may be measured by the Consumer Price Index (CPI).

In Year 1 the CPI was 100; 25 years later, it was 225. What was the annual rate of inflation?

Nancy and Pam both currently earn $110,000. If the annual rate of inflation is 3 percent, how much must each earn after eleven years to maintain their purchasing power?

Your parents bought a home for $50,000 in Year 1 and sold it in Year 26 for $260,000. What was the annual rate of price increase over the 25 years?

Reference no: EM133037554

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