• Pi is the initial price ($) • r is the rate of inflation over the period (%) To calculate the inflated price, multiply the initial price by the inflation rate, then add the result to the initial price. ## How to Calculate Inflated Price? The following example problems outline how to calculate Inflated Price. Example Problem #1: 1. First, determine the initial price ($).
1. The initial price ($) is given as: 600. 2. Next, determine the rate of inflation over the period (%). 1. The rate of inflation over the period (%) is provided as: 10. 3. Finally, calculate the Inflated Price using the equation above: P = Pi + Pi *r/100 The values given above are inserted into the equation below: P = 600 + 600 *10/100 = 660.00 ($)

Example Problem #2:

For this problem, the variables needed are provided below:

initial price (\$) = 1550

rate of inflation over the period (%) = 5

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

P = Pi + Pi *r/100 = ?