3
QuizMultiple Choice

Inflation and Purchasing Power

Question 3 • T1 - 4 RMA-TX-Financial Math-B

The CPI is currently 153. If a coffee maker costs $31.90 today, how much did one cost in 1983, to the nearest cent?

Answer
A
$20.85
B
$21.20
C
$26.60
D
$48.81

Explanation

The CPI of 153 means prices today are 1.53 times their 1983 level, when the CPI was 100. Divide $31.90 by 1.53: $31.90 ÷ 1.53 ≈ $20.85, so the coffee maker cost $20.85 in 1983, choice A.

AI-written and checked against the verified answer.

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