Question

If the total expenditures of a typical family equaled $35,000 per year in 2000 and the exact same basket of goods and services cost $40,000 in the year 2005, the family's cost of living is _________

Answer 1

The correct answer is "The family cost of living has increased by 14.28%"

Step-by-step explanation:

If the total expenditures of a typical family equaled $35,000 per year in 2000

$35,000 ------ 2000

And the exact same basket of goods and services cost $40,000 in the year 2005.

$40,000 - $35,000 = $5,000 (Diference or increasement beetween the year 2000 and 2005)

Rule of three

$35,000 ------ 100%

$5,000----------?

(5000 x 100) ÷ 35,000= 14,28%

The family cost of living has increased by 14.28% in the last five years.