Answer :
Final answer:
To calculate the rate of inflation when the price index moves from 201 to 229, we use the percentage change formula. The inflation rate is approximately 13.93%.
Explanation:
The question asks us to calculate the rate of inflation when the price index moves from 201 to 229. Inflation rate is calculated as the percentage change in the price index from one period to another. Using the percentage change formula, we can determine the rate of change in prices, commonly known as the rate of inflation.
To calculate the rate of inflation, we use the following formula:
Inflation Rate = ((New Price Index - Old Price Index) / Old Price Index) * 100
Substituting the given values:
Inflation Rate = ((229 - 201) / 201) * 100
Inflation Rate = (28 / 201) * 100
Inflation Rate ≈ 13.93%
Therefore, the rate of inflation is approximately 13.93%.
