The consumer price index for apparel was 100 in a given year; five years later it was 131. This means that an article of clothing that initially sold for $30 would cost ___ five years later.
A) $24
B) $39
C) $61
D) $69

Question

Quizplus · Accepted Answer

The consumer price index (CPI) increase from 100 to 131 indicates a 31% increase in the price level. Therefore, an article of clothing that initially sold for $30 would cost 31% more five years later, which is an increase of $9.30 ($30 * 0.31), making the new price $39.30, which rounds to $39.

The Consumer Price Index for Apparel Was 100 in a Given