Kamel paid for a residence in 1982 for 67,000 dollars as well as sole it in 2001. If a 1982 CPI is 96.5 as well as a 2001 CPI is 177.7, how most would a residence be value in 2001 dollars.
Please uncover me how we did this problem.
There are 2 suggestions to question “house worth?”
House worth at 2001= 177.7/96.5 * 67000
= 123,377.20 dollars
The ratio (house value in 2001):(house value in 1982) is – so we assume – the same as the ratio (2001 CPI):(1982 CPI).
House worth at 2001= 177.7/96.5 * 67000
= 123,377.20 dollars
The ratio (house value in 2001):(house value in 1982) is – so we assume – the same as the ratio (2001 CPI):(1982 CPI).
Plug in the numbers and cross-multiply.