Respuesta :
The increase in monthly payment would be done by $15 if the original amount is $750.
What is CPI?
CPI stands for Consumer Price Index and represents the change in prices of goods and services over the period of time being paid by the consumers.
Given values:
CPI of the base year: 150
CPI of the current year: 153
Amount paid: $750
Step-1 Computation of inflation rate :
[tex]\rm\ Inflation \rm\ rate =\frac{\rm\ CPI \rm\ of \rm\ current \rm\ year - \rm\ CPI \rm\ of \rm\ base \rm\ year}{\rm\ CPI \rm\ of \rm\ base \rm\ year} \\\rm\ Inflation \rm\ rate=\frac{153-150}{150} \\\rm\ Inflation \rm\ rate=0.02 \times\ 100 \\\rm\ Inflation \rm\ rate=2\%[/tex]
Step-2 Computation of increase in monthly payment:
[tex]\rm\ Increase \rm\ in \rm\ monthly \rm\ payment=\rm\ Inflation \rm\ rate \times\ \rm\ Original \rm\ amount\\\rm\ Increase \rm\ in \rm\ monthly \rm\ payment=2\% \times\ \$750\\\rm\ Increase \rm\ in \rm\ monthly \rm\ payment=\$15[/tex]
Therefore, the increase of $15 in the monthly payment where the original amount of $750 with an inflation rate of 2%.
Learn more about the CPI in the related link:
https://brainly.com/question/14868990
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