Question

A raincoat costs $79.25 today. If a similar raincoat cost $52.48 in 1983, what is the CPI? a. 166 b. 151 c. 132 d. 127

Answer 1

B. You divide 79.25/52.48 and get 1.51, which translates to 151 percent.

Answer 2

Option b. 151

Explanation:

A raincoat costs $79.25 today. If a similar raincoat cost $52.48 in 1983 then we have to calculate the the CPI in 1983.

Since formula to calculate CPI will be

CPI = (Price of raincoat today/Price of raincoat in 1983)×100

CPI = 79.25×100/52.48 = 151

Therefore option b. CPI = 151 is the answer.