Question

The current cost of a loaf of bread is $2.89. At the time of this writing, the CPI for bread is 323.0. What was the cost of a loaf of bread in 1983 to the nearest cent?

This is a fill in the blank question.

Answer 1

Cost of loaf of bread in 1983 is 90 cents

Explanation:

Mathematically;

CPI = Cost of market in given year/cost of market in base year * 100

From the question,

CPI = 323

cost of market in given year =2.89

cost of market in base year = ?

323 = 2.89/c * 100

323c = 289

c = 289/323

c = 0.8947

which is approximately 90 cents