Suppose prices changed from one year to the next as shown in columns 3 and 4 of the following table. Fill in the rest of the table to calculate the average inflation rate.
Instructions:
1. Calculate the total budget for this year and last year. Enter to the nearest whole number.
2. Using the formula, ((new price - old price)/old price), calculate the percentage change in price. Include a minus sign (-) if the percentage change in price is falling.
3. Calculate the item weight from last year to the nearest three decimal places.
4. Calculate the inflation impact by multiplying the percentage change in price by the item weight. Round your answer to the nearest two decimal places in percent form. Include a minus sign (-) if the change is negative. Weights are in decimals, not %.
5. Calculate the average inflation rate to two decimal points.
6. All $ values can be to the nearest whole dollar.
|
Item
|
Quantity
|
Unit Price Last Year
|
Unit Price This Year
|
Total Last Year
|
Total This Year
|
% Change in Price
|
Last Year Item Weight
|
Inflation Impact
|
|
Coffee
|
20 pounds
|
$6
|
$8
|
$
|
$
|
%
|
%
|
|
|
Tuition
|
1 year
|
4,000
|
5,000
|
$
|
$
|
%
|
%
|
|
|
Pizza
|
150 pizzas
|
10
|
12
|
$
|
$
|
%
|
%
|
|
|
Cable TV
|
12 months
|
30
|
36
|
$
|
$
|
%
|
%
|
|
|
Vacation
|
1 week
|
250
|
300
|
$
|
$
|
%
|
%
|
|
|
|
|
|
Total Budget
|
$
|
$
|
|
Average inflation: %
|