Question

Determine the CPI for a suit that costs $235 now and cost $90 in 1967.a. 261b. 203c. 219d. 275

Answer 1

Answer:

$A\text{ :261}$

Explanation:

Here, we want to calculate the CPI for the cost of the suit

To do this,we use the weighted average method

What we will do here is to divide the past price by the current price and convert the value to a percentage

Mathematically, we have this as:

$\frac{\text{Present cost}}{\text{Cost in 1967}}\text{ }\times\text{ 100 \%}$

Substituting the values, we have:

$\frac{235}{90}\text{ }\times\text{ 100 = 261}$