Determine the CPI for a car that costs $9,875 now and cost $4,430 in
1967.
a. 448
b. 223
c. 22.3
d. 44.8
b. 223
To determine the Consumer Price Index (CPI), we can use the formula:
CPI = (Current Price / Base Year Price) * 100
In this case, the current price is $9,875 and the base year price is $4,430.
CPI = (9,875 / 4,430) * 100
CPI ≈ 222.65
Therefore, the correct answer is:
b. 223
To determine the Consumer Price Index (CPI) for a car, we need to compare the prices of the car in two different years and calculate the percentage increase.
The formula for calculating the CPI is:
CPI = (Price in Current Year / Price in Base Year) * 100
In this case, the current year is now and the base year is 1967.
Step 1: Calculate the CPI using the given prices:
CPI = ($9,875 / $4,430) * 100
CPI = 222.788
Step 2: Determine the closest answer option:
a. 448
b. 223
c. 22.3
d. 44.8
The closest answer option to the calculated CPI of 222.788 is:
b. 223
Therefore, the answer is 223.