SOLUTION: What is wrong with the following : An index number of retail prices in April 1995 was 124.2 (jan 1994=100). In april 2000 the value of the index was 150.4 (jan 1994=100). Hence

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Question 1041940: What is wrong with the following :
An index number of retail prices in April 1995 was 124.2 (jan 1994=100).
In april 2000 the value of the index was 150.4 (jan 1994=100). Hence prices
had gone up by 26.2% between april 1995 and april 2000.

Answer by Theo(13342)   (Show Source): You can put this solution on YOUR website!
in april, 1995, the index was 124.2.
in april, 2000, the index was 150.4.

the difference is 150.4 - 124.2 = 26.2.

that's not the % difference.

that's the absolute difference.

take the absolute difference and divide it by 124.2 and you get .210950081.

multiply that by 100 and you get 21.0950081%.

that's the percent difference from 124.2.

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