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If the Price Level This Year Was 140 and Was

question 172

Short Answer

If the price level this year was 140 and was 135 last year, what was the inflation rate to the nearest decimal?


Definitions:

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Deposit

A sum of money placed into a bank account or given as initial payment or security for the purchase of an item.

Compounded Daily

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a daily basis.

Interest

The cost of borrowing money or the return on investment for lending money, determined as a percentage of the principal amount.

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