If the Consumer Price Index Was 115 in One Year

question 139

Multiple Choice

If the consumer price index was 115 in one year and 120 in the next year, then the rate of inflation from one year to the next was:

• A)4.3 percent.
• B)5.1 percent.
• C)5.3 percent.
• D)6.8 percent.

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Definitions:

Rate of Return

The successful or unsuccessful financial change in an investment over a predetermined timeline, outlined as a percentage of the initial expenditure.

Annual Dividend

The complete sum of dividends a shareholder gets from a corporation over the course of a single fiscal year.

Dividend Increase

An action by a company to increase the amount of money paid out to shareholders per share, typically signaling financial health.

Market Rate

The current market rate for interest on investments or loans available in the marketplace.