the CPI was 96 in 1982, and the CPI was 208 in 2010. How much money would you have needed in 2010 in order to buy what you could have bought with $500 in 1982?

Question

Quizplus · Accepted Answer

We need to adjust $500 in 1982 to its equivalent value in 2010. 
Using the CPI values for both years, we can set up the following proportion:

1982 CPI / 2010 CPI = 1982 dollars / 2010 dollars

Solving for 2010 dollars:

2010 dollars = 1982 dollars x (2010 CPI / 1982 CPI)

2010 dollars = $500 x (208/96)

2010 dollars = $1,083.33

Therefore, you would have needed $1,083.33 in 2010 to buy what $500 could buy in 1982. 
The correct answer is B.

The CPI Was 96 in 1982, and the CPI Was