In-state tuition and fees at Virginia Commonwealth University (VCU) was $9517 for the 2011-12 academic year. The CPI for 2011 was 224.9 and the CPI for 2001 was 177.1. What is the 2011-2012 tuition in 2001 dollars?
A) $1270
B) $1642
C) $7494
D) $7875
E) $12,086

Question

Quizplus · Accepted Answer

To convert the tuition from 2011-12 dollars to 2001 dollars, we need to adjust for the change in CPI. We can use the following formula:
Tuition in 2001 dollars = (Tuition in current dollars) x (CPI in 2001) / (CPI in current year)
Plugging in the numbers:
Tuition in 2001 dollars = $9517 x 177.1 / 224.9 = $7,493. Therefore, the best choice is C.

In-State Tuition and Fees at Virginia Commonwealth University (VCU) Was