Adding Reply Archived Topic: It will not be bumped to the top of the forum. Topic Business Math question Membername   Not a member? Sign Up Free (takes 20 seconds) Password   Forgotten your password? Post Font: Verdana Arial Black Georgia Comic Sans Impact   Size: Tiny Normal Big Huge   Color: Default Dark Red Red Orange Brown Green Olive Cyan Blue Dark Blue Indigo Black [ Check Spelling ] [ Post Preview ] [ LiveTags ] FAQ Keyword Search: Post Options Favorites Manager Notify me of new replies to this topic by email Notify me of new replies to this topic by private message Original Post SilverDragon1Wings Posted at 11:11 am on Sep. 16, 2008 I'm a bit confused as to how my professor explained the rate of inflation formula. My first homework question is this: In 1957 a gallon of milk cost 0.97 cents. Today, it costs 3.20 $. What is the rate of inflation of a gallon of milk for the period? So, if I understand it correctly, {via referencing google for the formula}. Then my calculations should go like this: In 1957 the inflation rate was 100%, today the rate of inflation would be 100% times the price of milk, 3.20. Which would make, obviously, 320. So to continue finding out the rate of inflation, I would subtract the number 320 by 100, and get 220. Now, I divide that number by 100 to get the percentage, equaling 2.2, or 220%. Did I do this right, or am I just confused and stupid?

Replies SilverDragon1Wings Posted at 11:20 am on Sep. 16, 2008 I remember from the lesson that it had to do with some formula of rate = original price over new price or something like that, but I can't really understand it the way my professor is teaching the class. I loved business math when I took it in high school, but it seems to me now like Einstein shit, the way my professor explains it. lucid dreams19 Posted at 11:16 am on Sep. 16, 2008 im pretty sure its just old price over new price. so its 3.20/.97 which givces you 330% but i might be wrong too All 2 previous replies displayed.