Question

From 1960 to 1980 , the consumer price index (cpi) increased from 29.6 to 82.4. If a frozen chicken pie cost $0.28 in 1960 and the price of frozen chicken pies increased at the same rate as the CPI from 1960 to 1980, approximately how much did a frozen chicken pie cost in 1980?

Answer 1

.78 is the answer for apex hope it helps

Explanation:

Answer 2

CPI in 1960 = 29.6

CPI in 1980 = 82.4

Growth (%) in CPI =
`\frac{\text{CPI in 1980 - CPI in 1960}}{\text{CPI in 1960}}` × 100

⇒ Growth (%) in CPI =
`(82.4-29.6)/(29.6)` × 100

⇒ Growth (%) in CPI = 178.3783.. %

⇒ Growth (%) in CPI = 178.4%

Now, we know that price of frozen chicken pie in 1960 = $0.28

Also, we know that over 1960 to 1980, frozen chicken pie price grew at the same rate as CPI

Hence, Price of Chicken Pie in 1980 = Price of Chicken Pie in 1960 × (1 + Growth in CPI)

⇒ Price of Chicken Pie in 1980 = 0.28 × (1 + 178.4%)

⇒ Price of Chicken Pie in 1980 = 0.28 + (0.28 × 178.4%)

⇒ Price of Chicken Pie in 1980 = 0.28 + 0.49952

⇒ Price of Chicken Pie in 1980 = 0.28 + 0.50

⇒ Price of Chicken Pie in 1980 = $0.78

Hence, price of chicken pie in 1980 would be ~$0.78