Answer:
A. $3
B. $257.142
C. $2.25
Explanation:
A. In 1925, the CPI was 18 and the price of a movie ticket was $0.30.
The current CPI is 180.
The price today will be
= [tex]\frac{Price}{CPI}\ \times\ Current\ CPI[/tex]
= [tex]\frac{0.3}{18}\ \times\ 180[/tex]
= $3
B. In 1930, the CPI was 14 and a cook earned $20 a week.
The current CPI is 180.
The price today will be
= [tex]\frac{Price}{CPI}\ \times\ Current\ CPI[/tex]
= [tex]\frac{20}{14}\ \times\ 180[/tex]
= $257.142
C. In 1940, the CPI was 16 and a gallon of gas cost $0.20.
The current CPI is 180.
The price today will be
= [tex]\frac{Price}{CPI}\ \times\ Current\ CPI[/tex]
= [tex]\frac{0.2}{16}\ \times\ 180[/tex]
= $2.25
