A 1963 Chevy Bel Air a classic car today, cost $2400 new in mid 1963. How much would that be in 2012 dollars?
To calculate the value of $2400 from 1963 in 2012 dollars, we need to adjust for inflation. We can use the Consumer Price Index (CPI) to determine the inflation rate over this period.
First, we need to find the CPI values for both 1963 and 2012. The CPI for 1963 was approximately 30.6, and for 2012 it was around 229.6.
Next, we calculate the inflation rate by dividing the CPI for 2012 by the CPI for 1963:
Inflation rate = CPI 2012 / CPI 1963 = 229.6 / 30.6
Therefore, the inflation rate during this period is approximately 7.51.
To find the value of $2400 in 2012 dollars, we multiply the inflation rate by the original cost:
Value in 2012 dollars = Original cost * Inflation rate = $2400 * 7.51
Hence, the value of a 1963 Chevy Bel Air in 2012 dollars would be approximately $18,024.