Betty bought a house in 1987 for $99,000 and sold it in 2014. If the 1987 CPI is 113.6 and the 2014 CPI is 236.7, how much would the house be worth in 2014 dollars?

Question

Quizplus · Accepted Answer

To adjust the 1987 price to 2014 dollars, you use the formula: (Price in 1987 dollars) * (2014 CPI / 1987 CPI) = Price in 2014 dollars. Plugging in the numbers: $99,000 * (236.7 / 113.6) = $206,279.

Betty Bought a House in 1987 for $99,000 and Sold