John bought a house in 1947 for $19,000 and sold it in 1997. If the 1947 CPI is 22.3 and the 2014 CPI is 236.7, how much would the house be worth in 2014 dollars?
A) $182,640
B) $201,673
C) $238,501
D) $253,054

Question

Quizplus · Accepted Answer

To adjust the 1947 price to 2014 dollars, use the formula: (2014 CPI / 1947 CPI) * 1947 price. Plugging in the values: (236.7 / 22.3) * $19,000 = $201,673.

John Bought a House in 1947 for $19,000 and Sold