Question

When the CPI is 185, an electric razor cost $57.81. What is the difference between the price of an electric razor in 1983 and the cost of an electric razor when the CPI is 207, to the nearest cent?

Answer 1

$33.44 is the answer. 

Answer 2

Required Difference = 11.89%

Explanation:

When the CPI is 185, an electric razor cost $57.81

⇒ Old CPI = 185

Now, in 1983 The CPI is 207

⇒ New CPI = 207

Now, we need to find the difference between the price of an electric razor in 1983 and the cost of an electric razor when the CPI is 207, to the nearest cent

`\text{Required Difference = }\frac{\text{New CPI - Old CPI}}{\text{Old CPI}} * 100`

⇒ Required Difference = 0.1189 × 100

⇒ Required Difference = 11.89%