Question

In 1969, malcolm bought a pontiac firebird for $2,500. if the price index was 36.7 in 1969 and the price index was 235 in 2013, then what is the price of the firebird in 2013 dollars?

Answer 1

consumer price index = (current price 2013/ base price 1969) x 100
where:
consumer price index2013 = 235
base price 1969 = $2500

Solution
current price 2013 = (consumer price index /100) x base price 1969
current price 2013= (235/100)x $2500
current price = $5875

The price of pontiac firebird in 2013 is $5875.