An electric device delivers a current of [tex]$15.0 A$[/tex] for 30 seconds. How many electrons flow through it?
Answer (1)
Calculate the cost of the basket in year 1: ( 5 × $1.00 ) + ( 2 × $2.00 ) = $9.00 .
Calculate the cost of the basket in year 2: ( 5 × $1.25 ) + ( 2 × $2.10 ) = $10.45 .
Calculate the CPI for year 2: $9.00 $10.45 × 100 = 116.11 .
The CPI for year 2 is 116.11 .
Explanation
Understanding the Problem We are asked to calculate the Consumer Price Index (CPI) for year 2, using year 1 as the base year. The CPI measures the change in prices of a basket of goods and services. In this case, the basket contains 5 toothbrushes and 2 tubes of toothpaste. We are given the prices of these items in year 1 and year 2.
Calculating the Cost of the Basket in Year 1 First, we need to calculate the cost of the basket in year 1. The cost is calculated by multiplying the quantity of each item by its price and then summing the results.
Cost in Year 1 The cost of the basket in year 1 is: ( 5 × $1.00 ) + ( 2 × $2.00 ) = $5.00 + $4.00 = $9.00
Calculating the Cost of the Basket in Year 2 Next, we calculate the cost of the basket in year 2, using the same method.
Cost in Year 2 The cost of the basket in year 2 is: ( 5 × $1.25 ) + ( 2 × $2.10 ) = $6.25 + $4.20 = $10.45
Calculating the CPI for Year 2 Now, we can calculate the CPI for year 2. The CPI is calculated as: CPI year 2 = Cost of basket in year 1 Cost of basket in year 2 × 100
CPI Calculation Plugging in the values we calculated: CPI year 2 = $9.00 $10.45 × 100 = 1.1611 × 100 = 116.11
Final Answer Therefore, the CPI for year 2 is approximately 116.11.
Examples
Understanding CPI is crucial in everyday financial planning. For instance, if you're budgeting for groceries, knowing the CPI helps you anticipate how much more you might spend next year compared to this year. Similarly, economists use CPI to track inflation and adjust economic policies, while businesses use it to make informed decisions about pricing and wages. By monitoring the CPI, individuals and organizations can make better financial decisions and adapt to changing economic conditions.
