A ham and cheese sandwich at the local deli costs $4.99 in 2005.If the CPI in 2005 was 90.0 and the CPI today is 121.0,the equivalent price for the ham and cheese sandwich today is

Question

Quizplus · Accepted Answer

The CPI is a measure of the average change in prices over time for a basket of goods and services. The CPI in 2005 was 90.0, and the CPI today is 121.0. This means that the prices of goods and services have increased by an average of 21.0% since 2005. To find the equivalent price for the ham and cheese sandwich today, we need to multiply the price in 2005 by the CPI today and divide by the CPI in 2005.```Equivalent price = (Price in 2005) * (CPI today) / (CPI in 2005)Equivalent price = $4.99 * 121.0 / 90.0Equivalent price = $6.71```Therefore, the equivalent price for the ham and cheese sandwich today is $6.71.

A Ham and Cheese Sandwich at the Local Deli Costs