Spring 2018 Math 108 ACM Save Homework: Section 3.D Homework HW Score: 25%, 3 of

Question

Spring 2018 Math 108 ACM Save Homework: Section 3.D Homework HW Score: 25%, 3 of 12 pts 4of12(7 complete : Question Hep * X 3.D.17 Average Annual Consumer Price Index (CPI)(1982-1984=100) Suppose you needed $19,000 to mantain a particular standard of liing in 1975 How much would you have needed in 2002 to mantain the same standard of ving? Assume that all prices have nsen at the same rate as the CP Year 1995 1996 1997 CPI 152 4 156 9 160 5 163 0 166 6 172 2 103 9 107.6 1973 1974 1975 1976 1977 1978 1979 1960 1981 1982 1983 1984 1985 1986 1987 1968 1969 1990 49 3 How much would you have needed? 1136 118 3 569 60 6 65 2 72 6 82 4 90 9 96 5 99 6 1999 2001 130 7 136 2 140 3 144 5 148 2 Round to the nearest dollar) 1799 1992 1993 1994 195 3 Enter your answer in the answer box and then click Check Answer All parts showing Clear All

Explanation / Answer

CPI for 1975 = 53.8

CPI for 2002 = 179.9

Hence,

Amount needed for same standard of living in 2002

= $ 19000 * (179.9/ 53.8)

= $ 63533

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