If the CPI was 104 in 1967 and is 390 today,then $10 in 1967 purchased the same amount of goods and services as
A)$2.67 purchases today.
B)$37.50 purchases today.
C)$39.00 purchases today.
D)$104.00 purchases today.

Question

Quizplus · Accepted Answer

To find out how much $10 in 1967 would be worth today, we need to adjust it for inflation using the CPI. We can use the following formula:

Value in Today's Dollars = Value in Base Year Dollars x (CPI Today / CPI in Base Year)

Substituting the values we have:

Value in Today's Dollars = $10 x (390 / 104) = $37.50

Therefore, $10 in 1967 would be worth $37.50 in today's dollars. So, the correct choice is B.

If the CPI Was 104 in 1967 and Is 390