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The Consumer Price Index (CPI) is a measure of inflation obtained by comparing current prices with base prices in 1982–84. We can find the inflation rate for a given time period by calculating the percent of change in the CPI over that time period. For example, the CPI in 2005 was 195.3 and in 2009 it was 214.5, so the inflation rate was
Effect of inflation on the cost of cars.
a. Calculate the inflation rate from 1990 to 2010.
b. If a car cost $17,000 in 2010, use the inflation rate from part (a) to estimate what the car would have cost in 1990.
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Mathematics All Around (6th Edition)
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