In 1989, a four-year college degree would set you back $26,902. The consumer price index was 123.94 in January 1989. If the current consumer price index is 251.1, what is the cost of the four-year degree in current dollars?

Question

Quizplus · Accepted Answer

To adjust the cost to current dollars, use the formula: (Old Cost) * (Current CPI / Old CPI) = (26,902) * (251.1 / 123.94) = $54,502.92.

In 1989, a Four-Year College Degree Would Set You Back