In 1983, a can of house paint cost $16.35. In 2000, a can of house paint cost $28.94, and in 2005, a can of house paint cost $32.54. What is the difference in CPI between 2000 and 2005?

Question

Ashlyn Crawford

Mathematics

4 September, 13:54

In 1983, a can of house paint cost $16.35. In 2000, a can of house paint cost $28.94, and in 2005, a can of house paint cost $32.54. What is the difference in CPI between 2000 and 2005?

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Answers (1)

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Darryl Vaughn · Answer 1

The Consumer Price Index is calculated through the equation,

CPI = (current period price/base period price) x 100

The base period is 1983. Solving the CPIs for 2000 and 2005

(2000)

CPI = ($28.94/$16.35) x 100 = 177

(2005)

CPI = ($32.54/$16.35) x 100 = 199

The difference between the CPIs of 2005 and 2000 is 199 - 177 = 22.