Question

The cost of a basket of goods was $80 last year. If the basket of goods costs $88 this year. What is the inflation rate?

Answer 1

The inflation rate can be simply calculated using (new-old)/old * 100%.
Plugging in the values, we get
(88-80)/80*100%=10%
So, the inflation rate is 10%

Answer 2

....What is the inflation rate?

To calculate the rate, apply the formula: |(final value - initial value)/initial value]*100

final value:$88

initial value: $80

rate: [(88-80)/80]*100=10%.

Explanation: