In 1969,Malcolm bought a Pontiac Firebird for $2,500.If the price index was 36.7 in 1969 and the price index was 235 in 2013,then what is the price of the Firebird in 2013 dollars?
A)$4,609.57
B)$4,957.51
C)$13,508.17
D)$16,008.17

Question

Quizplus · Accepted Answer

To adjust for inflation, use the formula: (Price in 1969) * (Price Index in 2013 / Price Index in 1969) = Price in 2013 dollars. So, $2,500 * (235 / 36.7) = $16,008.17.

In 1969,Malcolm Bought a Pontiac Firebird for $2,500