the following table shows the average price per ounce of gold in the given year:\nyear 1980 1990 2000 2010…

the following table shows the average price per ounce of gold in the given year:\nyear 1980 1990 2000 2010 2020\nprice per ounce $568.97 $357.16 $309.96 $1173.40 $1679.28\ninflation rates are shown in the following table:\ntime span 1980 - 2020 1990 - 2020 2000 - 2020 2010 - 2020\ninflation 214% 98% 50% 19%\ncalculate the price per ounce of gold in constant 2020 dollars.\n(use decimal notation. give your answer to two decimal places.)\nprice per ounce in 1980 in 2020 dollars: $

the following table shows the average price per ounce of gold in the given year:\nyear 1980 1990 2000 2010 2020\nprice per ounce $568.97 $357.16 $309.96 $1173.40 $1679.28\ninflation rates are shown in the following table:\ntime span 1980 - 2020 1990 - 2020 2000 - 2020 2010 - 2020\ninflation 214% 98% 50% 19%\ncalculate the price per ounce of gold in constant 2020 dollars.\n(use decimal notation. give your answer to two decimal places.)\nprice per ounce in 1980 in 2020 dollars: $

Answer

Explanation:

Step1: Recall inflation - adjustment formula

The formula to adjust a price from an earlier year to a later - year (constant dollars) is $P_{adjusted}=P_{original}(1 + r)$, where $P_{original}$ is the price in the earlier year and $r$ is the inflation rate for the time - span between the earlier year and the later year.

Step2: Identify values for 1980 to 2020

For the price of gold in 1980, $P_{original}=568.97$ and the inflation rate $r = 2.14$ (since 214% = 2.14).

Step3: Calculate the adjusted price

$P_{adjusted}=568.97\times(1 + 2.14)$ $P_{adjusted}=568.97\times3.14$ $P_{adjusted}=1786.5658\approx1786.57$

Answer:

$1786.57$