From 1960 to 1970, the consumer price index (CPI) increased from 29.6 to 38.8. If a dozen tangerines cost $0.31 in 1960 and the price of tangerines increased at the same rate as the CPI from 1960 to 1970, approximately how much did a dozen tangerines cost in 1970?

Question

Macie Rocha

Mathematics

29 June, 08:10

From 1960 to 1970, the consumer price index (CPI) increased from 29.6 to 38.8. If a dozen tangerines cost $0.31 in 1960 and the price of tangerines increased at the same rate as the CPI from 1960 to 1970, approximately how much did a dozen tangerines cost in 1970?

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Answers (1)

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Carlos Chandler · Answer 1

The percent increase in the price index from 1960 to 1970 is:

% increase in price index = (38.8 - 29.6) * 100% / 29.6

% increase in price index = 31.08%

Therefore the price of a dozen tangerines in 1970 (X) is:

31.08 = (X - $0.31) * 100 / $0.31

X = $0.41