Ra3chKellseliz
Answered

The current cost of a box of cereal is $3.39. At the time of this writing, the CPI for cereal is 289.7. What was the cost of a box of cereal in 1983 to the nearest cent?

Verified Answer :

CharlieStryker

To
solve this problem we have to first identify the data that we need
and is important. You can arrange it like this:


Current
Cost of Cereal: $3.39

CPI:
289.7


To
find the cost of a box of cereal in 1983 we will need to use the
following formula:

Cost
in Base Year = Current Cost/CPI100


Replace
the data in the formula and we get the following:

1983
= 3.39/289.7100


In
1983 the cost of a box of cereal was $1.170176044


I
hope this helps, Regards.