Question

2009 2010

Limousine $180 $216
Prom Dress $270 $324



According to the table above and assuming that limo rental and prom dress purchase constitute the cost of the prom, the rate of prom inflation from 2009 to 2010 was
A. 10%.
B. 20%.
C. 50%.
D. 66%.
E. 83%.

Answer 1

To find the inflation rate of prom you want to start by adding the costs of each expense together under its respective year:

2009:
Limo = $180
Dress = $270
Total = $450

2019:
Limo = $216
Dress = $324
Total = $540

Next, find the consumer price increase/inflation. To do this we will take the increase of price from 2009 to 2010 and divide by the price in 2009.
2010 total: $540 - $450 (2009 total) = $90

$90/$450= 0.2 to find the percentage of inflation multiply by 100
(.02)(100)= 20%

The rate of prom inflation is 20%.