Question

What is the expected price of a calculator in the year 2000 if it costs $17.6 in 2015? You can use the chart below for a reference of CPI values.
Year CPI
1990 130.7
1995 152.4
2000 172.2
2005 195.3
2010 218.056
2015 237.017

Answer 1

Answer:

$12.78.

Step-by-step explanation:

To determine the expected price of a good in 2000, knowing that in 2015 it cost $ 17.6 and that the consumer price indexes were worth 172.2 in 2000 and 237.017 in 2015, the following calculation must be performed:

237.037 = 17.6

172.2 = X

X = 172.2 x 17.6 / 237.037

X = 3,030.72 / 237.037

X = 12.78

Thus, the expected price of the good in the year 2000 is $ 12.78.