In 1983, a winter hat cost $12.95. Today, a winter hat costs $24.50. If the CPI is 219, what is the percent relation of the actual price of a winter hat to the expected price? a. The actual price is 39.3% higher than the expected price. b. The actual price is 15.8% higher than the expected price. c. The actual price is 13.6% lower than the expected price. d. The actual price is 29.8% lower than the expected price.

Question

Mathematics

Jade

19 July, 10:54

In 1983, a winter hat cost $12.95. Today, a winter hat costs $24.50. If the CPI is 219, what is the percent relation of the actual price of a winter hat to the expected price? a. The actual price is 39.3% higher than the expected price. b. The actual price is 15.8% higher than the expected price. c. The actual price is 13.6% lower than the expected price. d. The actual price is 29.8% lower than the expected price.

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Answers (1)

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Keshawn Rowe · Answer 1

CPI - Consumer Price Rate;

CPI = (expected price) : (price in 1983) x 100

219 = (x : 12.95) x 100

x : 12.95 = 2.19

x = 2.19 x 12.95 = $28.36 (expected price)

p = (24.50 x 100) / 28.36 = 86.4 %

100 % - 86.4 % = 13.6 %

Answer:

C) The actual price is 13.6 % lower than the expected price.