In 2007, a U.S. forever stamp cost $0.41. In 2019, a U.S. forever stamp cost $0.55. In January 2007, the consumer price index was 207.34. If in January 2019, the consumer price index was 251.1, what is the approximate price of the 2007 forever stamp in 2019 dollars?
A)$0.55
B)$0.41
C)$0.50
D)$0.96

Question

Quizplus · Accepted Answer

To adjust the 2007 stamp price to 2019 dollars, use the formula: (Old Price) * (New CPI / Old CPI) = (2007 Price) * (2019 CPI / 2007 CPI) = $0.41 * (251.1 / 207.34) ≈ $0.50.