In 1972 in Kelowna, BC, one could buy model rocket engines for $1.50. If those same engines cost $3.00 today, which set of CPIs represents the same purchasing power for the cost in 1972 and the cost today?

Question

Quizplus · Accepted Answer

The CPI in 1972 is 60 and the CPI today is 120. This means that the cost of living has doubled since 1972. Therefore, the cost of the model rocket engines today is equivalent to the cost of the engines in 1972 multiplied by 2. $1.50 x 2 = $3.00.

In 1972 in Kelowna, BC, One Could Buy Model Rocket