The typical (median) price of a single-family home in a certain region rose from
ID: 3350822 • Letter: T
Question
The typical (median) price of a single-family home in a certain region rose from $73,900 in 1988 to $172,000 in 2008.Calculate the relative change in price from 1988 to 2008, and compare it to the overall rate of inflation as measured by the Consumer Price Index.
Average Annual Consumer Price Index (1982-1984=100)
Year
CPI
Year
CPI
Year
CPI
1976
156.9/
1987
113.6/
1998
163.0
1977
160.6/
1988
118.3/
1999
166.6
1978
165.2/
1989
124.0/
2000
172.2
1979
172.6/
1990
130.7/
2001
177.1
1980
182.4/
1991
136.2/
2002
179.9
1981
190.9/
1992
140.3/
2003
184.0
1982
196.5/
1993
144.5/
2004
188.9
1983
199.6/
1994
148.2/
2005
195.3
1984
103.9/
1995
152.4/
2006
201.6
1985
107.6/
1996
156.9/
2007
207.3
1986
109.6/
1997
160.5/
2008
215.3
Home prices increased by
133%.
(Round to the nearest percent as needed.)
The overall rate of inflation was?
What %.
(Round to the nearest percent as needed.)
Year
CPI
Year
CPI
Year
CPI
1976
156.9/
1987
113.6/
1998
163.0
1977
160.6/
1988
118.3/
1999
166.6
1978
165.2/
1989
124.0/
2000
172.2
1979
172.6/
1990
130.7/
2001
177.1
1980
182.4/
1991
136.2/
2002
179.9
1981
190.9/
1992
140.3/
2003
184.0
1982
196.5/
1993
144.5/
2004
188.9
1983
199.6/
1994
148.2/
2005
195.3
1984
103.9/
1995
152.4/
2006
201.6
1985
107.6/
1996
156.9/
2007
207.3
1986
109.6/
1997
160.5/
2008
215.3
Explanation / Answer
overall rate of inflation
CPI in 2008 = 215.3
CPI in 1988 = 118.3
= (215.3 - 118.3)/118.3 * 100%
= 81.9949 %
= 82 %
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