Question

An end table costs $69.85 today. If the CPI is 194, what would an end table cost in 1983, to the nearest cent?
a.
$135.51
b.
$124.15
c.
$36.00
d.
$23.76


Please select the best answer from the choices provided

A
B
C
D

Answer 1

C

Price in 1983 = 69.85 * (CPI_1983 / CPI_today) = 69.85 * (100 / 194) ≈ $36.00.