Final answer:
The percentage increase in prices from 2020 to 2021 is calculated by finding the difference between the two years' cost indices, dividing by the initial year's index, and converting to a percentage, resulting in a 5.85% increase.
Step-by-step explanation:
The percentage increase in prices from 2020 to 2021 can be calculated using a simple formula that measures the change in cost over time. Specifically, the percentage increase is found by subtracting the initial year's index from the subsequent year's index, dividing the result by the initial year's index, and then multiplying by 100 to get the percentage.
As given in the references, from 2020 to 2021, the cost of living rose from 2120 to 2244. Using the formula, we calculate the percentage increase as follows:
- Subtract the old value (2120) from the new value (2244) to find the increase: 2244 - 2120 = 124.
- Divide the increase (124) by the old value (2120): 124 / 2120 = 0.0585.
- Multiply by 100 to convert the decimal to a percentage: 0.0585 × 100 = 5.85%.
Therefore, the percentage increase in prices from 2020 to 2021 is 5.85%.