Question

From 1990 to 2000, the consumer price index (CPI) increased from

130.7 to 172.2. If a pound of peaches cost $0.77 in 1990 and the

price of peaches increased at the same rate as the CPI from 1990 to

2000, approximately how much did a pound of peaches cost in 2000?

Answer 1

$1.01

Explanation:

130.7/172,2 = 0.77/x, where x is the cost of a pound of peaches in 2000.

(172.2 * 0.77)/130.7 = 132.594/130.7 = $1.01

Answer 2

1.09 $

Explanation:

From 1990 to 2000 ( 10 years ) the consumer price index increased from

130.7 to 172.2 then

172,2 - 130.7 = 41.5 % was the net increase, if peaches suffered similar increase then we will look for 41.5 % of peaches price ( 1990)

0,77 ⇒ 100

x ?? ⇒ 41.5

x = 0,77* 41,5 / 100

x = 0,3196

Then price of a pound peaches in 2000 will be

0,77 + 0,32 = 1.09 $