Answer:
25.8%
Step-by-step explanation:
We have been given that Amy spent $155 last year for gas. This year she spent $195. We are asked to find the inflation rate.
We will use inflation rate formula to solve our given problem.
[tex]\text{Inflation rate}=\frac{\text{CPI}_{x+1}-\text{CPI}_{x}}{\text{CPI}_{x}}\times 100[/tex]
[tex]\text{Inflation rate}=\frac{195-155}{155}\times 100[/tex]
[tex]\text{Inflation rate}=\frac{40}{155}\times 100[/tex]
[tex]\text{Inflation rate}=0.2580645161290323\times 100[/tex]
[tex]\text{Inflation rate}=25.80645161290323\\\\\text{Inflation rate}\approx 25.8[/tex]
Therefore, the inflation rate is approximately 25.8%.
