Question

US national health expenditure was $7,892 per person in 2008 and $10,364 in 2016. The Consumer Price Index had a value of 210.228 in 2008 and a value of 241.432 in 2016. In 2016 dollars, how much was spending in 2008?

Answer 1

Year	Expenditure	CPI
2008	$ 7,892	210.228
2016	$ 10,364	241.432

Spending in the year 2008 has to be converted into 2016 dollar.

$\large Amount = \$ 7,892 \times \frac{CPI_{2016}}{CPI_{2008}}$

$\large \implies Amount = \$ 7,892 \times \frac{241.432}{210.228}$

$\large \implies Amount = \$ 7,892 \times 1.148429$

$\large \implies Amount \approx \$ \ 9,063.40$

Spending in 2008 in the 2016 dollar = $ 9,063

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