A 1963 Chevy Bel Air, a classic car today, cost $2400 new in mid-1963. How much would that be in 2012 dollars?
gotta look up the CPI for those years.
The result is: $17894.61
Using the Consumer Price Index, the cost of $2400 of goods and services has changed to $17894.61
The annual inflation rate (based on CPI-U) from January 1963 to January 2012 is 645.61%
goodcalculators. com/inflation-calculator/
To find out how much $2400 in 1963 would be in 2012 dollars, we can use the inflation rate to adjust for the change in purchasing power over time.
1. Start by determining the inflation rate between 1963 and 2012. You can find historical inflation rates from various sources like government websites, economic databases, or financial publications. Let's assume the inflation rate is 4% per year on average.
2. Calculate the number of years between 1963 and 2012. In this case, it would be 49 years (2012 - 1963).
3. Next, calculate the cumulative inflation factor by raising 1 plus the average inflation rate to the power of the number of years: (1 + 0.04) ^ 49.
4. Now, divide $2400 by the cumulative inflation factor to adjust for inflation: $2400 / ((1 + 0.04) ^ 49).
5. Calculate the result to find the equivalent amount in 2012 dollars.
Keep in mind that this method provides an estimate based on average inflation rates, and the actual inflation rate might vary. Additionally, other factors like supply and demand for classic cars may influence their current value.