Question

sofa pillows cost $26.80 each when the cpi is 159. in 1983, how many sofa pillows could you buy with $125?
a. four
b. six
c. seven
d. eight
please select the best answer from the choices provided
a
b
c
d

Explanation:

Step1: Find the 1983 price of one pillow

The formula to adjust for inflation using CPI is: \( \text{1983 Price} = \frac{\text{Current Price} \times 100}{\text{CPI}} \)
Current price of one pillow is $26.80, CPI is 159.
So, \( \text{1983 Price} = \frac{26.80\times100}{159} \approx \frac{2680}{159} \approx 16.86 \)

Step2: Calculate number of pillows in 1983 with $125

Number of pillows \( n=\frac{125}{\text{1983 Price per pillow}}=\frac{125}{16.86}\approx7.41 \)
Since we can't buy a fraction of a pillow, we take the integer part, which is 7 (because 716.86 = 118.02 ≤ 125 and 816.86 = 134.88 > 125)

Answer:

c. seven