Question

The movie "Return of the Jedi" earned $264 million in 1983 when it was released. The CPI in 1983 was 97.8 and the CPI in 2010 was 218.342. Approximately how much did the movie earn in 2010 dollars?

Answer 1

Earnings in 2010 = $589 million

Step-by-step explanation:

Given

CPI1 = Consumer Price Index (CPI) in 1983 when the movie was released = 97.8

E = Earnings in 1983 = $264 million

CPI2 = Consumer Price Index (CPI) in 2010 = 218.342

Earnings is 2010 is calculated by:

Earnings = CPI2/CPI1 * E

Earnings = 218.342/97.8 * $264 million

Earnings = 2.23 * $264 million

Earnings = $589.39 million

Earnings = $589 million ---- Approximated