A pair of ballet slippers cost $35.00 in 1990; a pair of the same type of slippers costs $105.00 in 2008. Using 1990 as the base year, what is the ballet slipper index number for 2008?
A) 300
B) 0.33
C) 3.0
D) $35.00
E) $105.00

Question

Quizplus · Accepted Answer

The index number is calculated by taking the price in the year of interest ($105.00 in 2008), dividing it by the price in the base year ($35.00 in 1990), and then multiplying by 100. This gives ($105 / $35) * 100 = 300.

A Pair of Ballet Slippers Cost $35