| Year | Price | Price Index | 2014 dollars |
| 1932 | $0.05 | 14 | |
| 1950 | $0.10 | 24 | |
| 1975 | $0.15 | 57 | |
| 1988 | $0.50 | 118 | $0.97 |
Place the correct price in each blank, to reflect the effects of inflation. Use 230 as the price index for the current year.
Answer
price in x year =(price in y year/ CPI in y yer)* CPI in x year
Price in the year 2014 of 1932=(0.05/14)*230=0.821428571=0.82
Price in the year 2014 of 1950=(0.1/24)*230=0.958333333=0.96
Price in the year 2014 of 1975=(0.15/57)*230=0.605263158=0.61
Price in the year 2014 of 1988=(0.5/118)*230=0.974576271=0.97
Converting Past Prices into Modern Dollar Values Year Price Price Index 2014 dollars 1932 $0.05 14...