Question

1. If rent for a particular apartment was $530/month in 1980 (CPI = 82.4), what would be the comparable rent in 1990 (CPI 130.7)? Round your answer to the nearest cent (i.e. two decimal places). Only enter the number, not the dollar sign ($).

2. Which of the following is not one of the 8 major categories of the CPI, as of 1998?

		Apparel
		Dairy and related products
		Medical care
		Recreation

3. The CPI's at the start of each decade from 1950 to 2005 were:

$xid-71224080_1$

What was the rate of inflation for the 1980s, as measured by the percentage change in the CPI?

		37.0%
		48.3%
		58.6%
		112.4%

Answer 1

ANSWER:

Rent in 1990 = (rent in 1980) x (130.7/82.4)

= $530 x (130.7/82.4)

= 840.67

Therefore the comparable rent per month in 1990 would be 840.67