SOLUTION:
Step 1:
In this question, we are given the following:
Step 2:
From the question, we can see that this involves inflation rate formula:
PART A:
To get H, we have to do the following:
[tex]\begin{gathered} Inflation\text{ Rate =}\frac{CPI\text{ }_{2020}-CPI_{2019}}{CPI_{2019}} \\ 0.18\text{ =}\frac{H-100}{100} \\ cross-multiply,\text{ we have that:} \\ H-100\text{ = 100 }(\text{ 0.18 }) \\ H\text{ -100 = 18} \\ collecting\text{ like terms, we have that:} \\ H\text{ = 100 + 18} \\ H\text{ = 118} \end{gathered}[/tex]
PART B:
To get K , we have to do the following:
[tex]\begin{gathered} Inflation\text{ Rate =}\frac{CPI_{2021}-CPI_{2020}}{CPI_{2020}} \\ \\ K\text{ = }\frac{142\text{ - H }}{H} \\ since\text{ H = 118} \\ K\text{ = }\frac{142\text{ - 118}}{118} \\ K\text{ =}\frac{24}{118} \\ K\text{ = 0.2033898305} \\ converting\text{ to percentage, we have that:} \\ K\text{ = 0.2033898305 X 100 \%} \\ K\text{ = 20.33898305\%} \end{gathered}[/tex]
correct, to the nearest whole number, we have that:
[tex]K\text{ = 20 \% }(\text{ to the nearest whole number})[/tex]
