Question

a raincoat costs $79.25 today. if a similar raincoat cost $52.48 in 1983, what is the cpi?
a. 166
b. 151
c. 132
d. 127
please select the best answer from the choices provided
a
b
c
d

Explanation:

Step1: Recall CPI formula

The formula for the Consumer Price Index (CPI) is $CPI=\frac{\text{Current Price}}{\text{Base Year Price}}\times100$.

Step2: Identify current and base prices

Current price (today) is $\$79.25$, base year (1983) price is $\$52.48$.

Step3: Calculate CPI

Substitute into the formula: $CPI = \frac{79.25}{52.48}\times100$. First, calculate $\frac{79.25}{52.48}\approx1.51$. Then multiply by 100: $1.51\times100 = 151$.

Answer:

b. 151