In 1969, malcolm bought a pontiac firebird for $2,500. if the price index was 36.7 in 1969 and the price index was 235 in 2013, then what is the price of the firebird in 2013 dollars?

Consumer price index = (current price 2013 / base price 1969) x 100

where:

consumer price index2013 = 235

base price 1969 = $2500

Solution

current price 2013 = (consumer price index / 100) x base price 1969

current price 2013 = (235/100) x $2500

current price = $5875

The price of pontiac firebird in 2013 is $5875.