Last Year the CPI Was 177

question 359

Essay

Last year the CPI was 177.1 and this year the CPI is 180.9. What was the inflation rate between these two years?

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Definitions:

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Yen Cash Flows

Cash flows related to financial transactions denominated in Japanese yen.

Absolute Purchasing Power Parity

A theory that states that the price of goods in different countries should be equal when measured in a common currency.

Identical Goods

Products that are exactly the same in every feature and aspect, making them interchangeable.