From 1960 to 1970, the consumer price index 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

Mathematics

Sierra Olson

26 March, 17:50

From 1960 to 1970, the consumer price index 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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Bridger Bryant · 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