Assume that the CPI in 2018 was 217, while the CPI in 1990 was 82. If a person had $6000 in 1990, its equivalent purchasing power in 2018 would be $10 850.

Name: Assume that the CPI in 2018 was 217, while the CPI in 1990 was 82. If a person had $6000 in 1990, its equivalent purchasing power in 2018 would be $10 850.
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Quizplus · Accepted Answer

To find the equivalent purchasing power in 2018, you use the formula: (2018 CPI / 1990 CPI) * 1990 dollars. So, (217 / 82) * $6000 = 2.64634146341 * $6000 ≈ $15,878.05, not $10,850.

Assume That the CPI in 2018 Was 217, While the CPI