The Price Index Was 120 in 2006 and 127

question 214

Multiple Choice

The price index was 120 in 2006 and 127.2 in 2007. What was the inflation rate?

• A)5.7 percent
• B)6.0 percent
• C)7.2 percent
• D)27.2 percent

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Definitions:

Form 1040-ES

A form used by taxpayers, primarily self-employed individuals, to estimate and pay their quarterly taxes to the IRS.

Estimated Payments

Quarterly payments made towards the expected tax liability for the year, common for self-employed individuals or those without sufficient tax withholding.

Form 1040

The standard IRS form that individuals use to file their annual income tax returns.

Household Workers

Individuals employed within a private home to perform domestic tasks, such as cleaning, cooking, and childcare.