Question

A bicycle helmet cost $41.40 in 1983. what will a bicycle helmet cost when the cpi is 186? round to the nearest cent. a. $222.58 b. $144.60 c. $77.00 d. $72.30

Answer 1

Answer:

77.00

Step-by-step explanation: just round and subtract

Answer 2

The price of the bicycle helmet cost at the time when CPI is 186 is given by: Option C; $77

What is consumer price index?

The consumer price index is the new cost of market basket in terms of percentage of old cost of market basket.

• $CPI_t$ = consumer price index in current period
• $C_t$ = cost of market basket in current period
• $C_0$ = cost of market basket in base period

Then, we have:

$CPI_t = \dfrac{C_t}{C_0} \times 100$

For this case, we're given that:

• $CPI_t$ = 186
• $C_t$ = To find
• $C_0$ = $41.40

Thus, we get:
$186 = \dfrac{C_t}{41.4} \times 100\\\\C_t = \dfrac{186 \times 41.4}{100} \approx \ 77$

Thus, the price of the bicycle helmet cost at the time when CPI is 186 is given by: Option C; $77

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