Inflation is a major concern for economists. Many are predicting higher inflation rate in the coming year. If a loaf of bread cost $1.99 last year and is now $2.25, determine the annual rate of inflation.

A) 13.06%
B) 11.08%
C) 10.28%
D) 9.54%
E) 8.63%

Question

Ankur Sharma · Accepted Answer

Final Answer : A, Explanation :  The annual rate of inflation is calculated as [(New Price - Old Price) / Old Price] * 100. So, [(2.25 - 1.99) / 1.99] * 100 = 13.06%.

Inflation is a major concern for economists. Many are predicting higher inflation rate in the coming year. If a loaf of bread cost $1.99 last year and is now $2.25, determine the annual rate of inflation.

A) 13.06%
B) 11.08%
C) 10.28%
D) 9.54%
E) 8.63%

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Inflation is a major concern for economists. Many are predicting higher inflation rate in the coming year. If a loaf of bread cost $1.99 last year and is now $2.25, determine the annual rate of inflation.A) 13.06%B) 11.08%C) 10.28%D) 9.54%E) 8.63%

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Learning Objectives

Learning Objectives

Related questions

Inflation is a major concern for economists. Many are predicting higher inflation rate in the coming year. If a loaf of bread cost $1.99 last year and is now $2.25, determine the annual rate of inflation.

A) 13.06%
B) 11.08%
C) 10.28%
D) 9.54%
E) 8.63%