Question

mr. green bought a winter coat for $175.50 in 1985 when the CPI was 205. How much would it have cost 5 years earlier when the CPI was 175?

Answer 1

Given:

The cost of the coat is $175.5 when CPI was 205

Let the cost is x when when CPI was 175

So, using the ratio and proportional to find x:

so,

$\begin{gathered} \frac{x}{175.5}=\frac{175}{205} \\ \\ x=175.5\cdot\frac{175}{205}=149.82 \end{gathered}$

So, 5 years earlier, the cost will be $149.82

The answer is option A) $149.82