SOLUTION: Is it B? I want to check my answer. Topic: Financial Mathematics If a basket of goods and services used to calculate CPI contains 2 pairs of socks at $2 each and 1 pair of s

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Question 1179969: Is it B? I want to check my answer.
Topic: Financial Mathematics
If a basket of goods and services used to calculate CPI contains 2 pairs of socks at $2 each and 1 pair of shoes at $50, what will the CPI for year 2 be if the 2 pairs of socks cost $2.05 and 1 pair of shoes costs $51?
A. 54.00
B. 55.10
C. 98.00
D. 102.04
Answer by MathLover1(20849) About Me  (Show Source):
You can put this solution on YOUR website!

Given:
1+pair of shoes for 1st year = $50
2 pair of socks for 1st year = $2, so 2 pair cost = $4
CPI for year 1
= >Price of shoes for 1st year + Price of Sock for 1st year= $50+%2B+4+=+54

Now
1 pair of Shoes for 2nd year = $51
2 pair of socks for 2nd year = $2.05 each, 2 pair cost $+2%2A+2.05+=4.10

CPI for Year 2
Price of shoes for 2nd year + Price of Sock for 2nd year= $51+%2B+4.1+=+55.10

Hence CPI for Year 2 is $55.10

answer: B. 55.10