8
QuizMultiple Choice

Inflation and Purchasing Power

Question 8 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

A full-length mirror cost $144.99 when the CPI was 163. What will a full-length mirror cost when the CPI is 211, to the nearest cent?

Answer
A
$305.93
B
$214.59
C
$187.68
D
$88.95

Explanation

Adjust the price in proportion to the CPI: $144.99 × (211 ÷ 163) = $187.686… . Rounded to the nearest cent, that is $187.69. Choice C, $187.68, is the closest listed amount, but it is one cent below the result; the choices appear to contain a rounding error.

AI-written and checked against the verified answer.

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