Cumulative Inflation as Percentage Price Increase

Steps:

• Calculate price increase: $2398.60 -$100 = $2298.60
• Divide increase by original price: $2298.60 /$100 = 22.986
• Convert to percentage: 22.986 × 100% = 2298.6% ≈ 2300%

Why C is correct:

• Cumulative inflation rate is the overall percentage change in price level, given by ((final price - initial price) / initial price) × 100%, equaling ~2300%.

Why the others are wrong:

• A: 23% ignores the decimal in the multiplier, underestimating by factor of 100.
• B: 230% treats the multiplier as 3.3 instead of 23, underestimating by factor of 10.
• D: 23000% multiplies the correct rate by 10, overstating the increase.

Final answer: C