Respuesta :
Answer:
b. 5.0 percent
Step-by-step explanation:
We have been given that the price index was 120 in 2012 and 126 in 2013. We are asked to find the inflation rate.
[tex]\text{Inflation}=\frac{\text{Price Index in current year-Price Index in base year}}{\text{Price index in base year}}\times 100[/tex]
[tex]\text{Inflation}=\frac{126-120}{120}\times 100[/tex]
[tex]\text{Inflation}=\frac{6}{120}\times 100[/tex]
[tex]\text{Inflation}=\frac{1}{20}\times 100[/tex]
[tex]\text{Inflation}=5[/tex]
Therefore, the inflation rate was 5% and option 'b' is the correct choice.
