-- Posted by SilverDragon1Wings 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? -- Posted by lucid dreams19 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 -- Posted by SilverDragon1Wings 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.