The Price Index Is 270 in One Year and 300

question 70

Multiple Choice

The price index is 270 in one year and 300 in the next. What is the inflation rate?

• A)1 percent
• B)9.3 percent
• C)10 percent
• D)11.1 percent

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Definitions:

Guaranteed Rate

A fixed interest rate assured by a lender or issuer for a specified period.

Discount Factor

A multiplier used to determine the present value of future cash flows or investments.

Working Capital

The measure of a company's short-term financial health and operational efficiency, calculated as current assets minus current liabilities.

Cash Inflow

The total amount of money being transferred into a company, typically measured over a specific period of time.