Question

a full-length mirror cost \\$144.99 when the cpi was 163. what will a full-length mirror cost when the cpi is 211, to the nearest cent?
a. \\$305.93
b. \\$214.59
c. \\$187.68
d. \\$88.95

Explanation:

Set up the proportion

Using the Consumer Price Index and Inflation Adjustment knowledge points

$$ \frac{\text{Price}_2}{\text{Price}_1} = \frac{\text{CPI}_2}{\text{CPI}_1} $$

Substitute the given values

Using the Inflation Adjustment knowledge point

$$ \frac{\text{Price}_2}{144.99} = \frac{211}{163} $$

Solve for the new price

Using the Inflation Adjustment knowledge point

$$ \text{Price}_2 = 144.99 \times \frac{211}{163} \approx 187.6815 $$

Round to the nearest cent

Using the Inflation Adjustment knowledge point

$$ \text{Price}_2 \approx \$187.68 $$

Answer:

• a. $305.93
• b. $214.59
• c. $187.68 (Correct answer)
• d. $88.95