Question

Between 2017 and 2018 in a particular nation, the value of the consumer price index for which the base year is 2014 -rose by 9.091 per cent, to a value of 120 in 2018. What was the value of the price index in 2017?

Short answer

The value of the price index in$2017$ is$110$.

Step-by-step solution

introduction

The price index estimates the general change in the price of a market container of labour and products throughout some undefined time frame.

step 2:explanation

Calculating the price index,

The value of the consumer price index for which the base year rose by $9.091$per cent.

percentage increase =$\frac{\text{price index of}2018-\text{price index of}2017}{\text{price index of}2017}\times 100$

$$\begin{gathered} \Rightarrow 9.091=\frac{120-priceindex2017}{priceindex2017}\times 100 \\ \Rightarrow 9.091\times priceindex2017=12000-100\times (priceindex2017) \\ \Rightarrow priceindex2017=\frac{{\displaystyle 12000}}{109.091}=111 \end{gathered}$$