Question

In 1983, a winter hat cost $12.95. Today, a winter hat costs $24.50. If the CPI is 219, what is the percent relation of the actual price of a winter hat to the expected price?

Answer 1

Answer:

The actual price is 13.6 % lower than the expected price....

Step-by-step explanation:

Lets suppose the expected price = x

CPI = ( expected price ) : ( price in 1983 ) *100

219  =  ( x  : 12.95 ) *100

Divide both sides by 100.

x : 12.95 = 2.19

x =2.19*12.95

= $28.36  ( expected price )

p = ( 24.50*100 ) / 28.36

p= 2450/28.36

= 86.4 %

100 % - 86.4 % = 13.6 %

The actual price is 13.6 % lower than the expected price....