Solve the problem.
-Suppose the current cost of gasoline is $3.28 per gallon. Find the current price index using the 1995 price as the reference value. In 1995, the cost of gasoline was 120.5 cents per gallon.
A)36.7
B)2.7
C)272.2
D)207.5

Question

Quizplus · Accepted Answer

The price index is calculated by taking the current price, dividing it by the base year price, and then multiplying by 100. So, using the 1995 price as the reference (base year price = 120.5 cents or $1.205), the calculation is ($3.28 / $1.205) * 100 = 272.2.

Solve the Problem. -Suppose the Current Cost of Gasoline Is $3.28 Per Gallon