29
QuizMultiple Choice

Inflation and the CPI — Quiz

Question 29 • Financial Math

The price of oranges increased from $⁢1.467 per pound in 2014 to $⁢1.728 per pound in 2024. What is the CPI for 2024, using 2014 as the base year? Consumer price index formula: CPI=((cost of basket in current year)/(cost of basket in base year))⋅100

Answer
A
112
B
100
C
118
D
105

Explanation

Using the CPI formula, divide the 2024 price by the 2014 base-year price and multiply by 100: (1.728 ÷ 1.467) × 100 ≈ 117.8. Rounded to the nearest whole number, the CPI is 118, so the correct choice is A) 118.

AI-written and checked against the verified answer.

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