If the CPI Is 120 in 2005 and 150 in 2006

question 93

Multiple Choice

If the CPI is 120 in 2005 and 150 in 2006, what is the rate of inflation over this period?

• A) 8%
• B) 20%
• C) 25%
• D) 30%

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Definitions:

SIMPLE Plan

A retirement savings plan available for small businesses and self-employed individuals, offering a simplified way to save for retirement.

Salary

A fixed regular payment, typically monthly or biweekly, made by an employer to an employee, especially a professional or white-collar worker.

Total Contribution

Total Contribution refers to the sum of all contributions or payments made to a designated entity or account, such as a retirement fund or charitable organization.

AGI

The total income earned by an individual, subtracting specific deductions, used to calculate how much income tax is owed.