# Consumer Price Index for Current and Past Value

1) Use the Consumer Price Index below to answer the question. What was the purchasing power of $1 in 1987 in terms of 1998 dollars?

2) Use the Consumer Price Index below to answer the question. Find the inflation rate from 1986 to 1987

3) Use the Consumer Price Index below to answer the question. Suppose you needed $52,000 to maintain a particular standard of living in 2000. How much would you have needed in 1986 to maintain the same standard of living?

4) Use the Consumer Price Index below to answer the question. In 1990, the federal minimum hourly wages was $4.75. Convert this to 2000 dollars.

5) Find the gasoline price index for 1995 using the 1955 price as the reference value.

6) Find the gasoline price index for a year in which the cost of gasoline was $0.62 per gallon. Use the 1965 price as the reference value. In 1965, the cost of gasoline was 31.2 cents per gallon.

7) Use the Consumer Price Index below to answer the question. Suppose you needed $35,000 to main a particular standard of living in 1986. How much would you have needed in 2000 to maintain the same standard of living?

8) The table below shows a housing index that can be used to compare housing prices in different cities. Suppose you see a house valued at $210,000 in Spokane. Find the price of a comparable house in Manhattan.

9) Use the Consumer Price Index below to answer the question. What was the purchasing power of $1 in 1987 in terms of 1990 dollars.

10) The table below shows a housing index that can be used to compare housing prices in different cities. Suppose you see a house valued at $830,000 in Palo Alto. Find the price of a comparable house in Juneau.

11) Use the Consumer Price Index below to answer the question. In 1991, the federal minimum hourly wage was $5.15. Convert this to 2000 dollars.

12) Use the Consumer Price Index below to answer the question. A book cost $17 in 1987. What was its price in 1994 dollars.

13) Find the gasoline price index for 2000 using the 1955 price as the reference value. Use the table below.

14) The table below shows a housing index that can be used to compare housing prices in different cities. Suppose you see a house valued at $300,000 in Palo Alto. Find the price of a comparable house in Denver.

15) Suppose the current cost of gasoline is $2.14 per gallon. Find the current price index using the 1995 price as the reference value. In 1995, the cost of gasoline was 120.5 cents per gallon.

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#### Solution Preview

1

Use the CPI numbers for the corresponding years in the following manner:

113.6 / 163.0 = 0.70

Answer: $0.70

2

Use the CPI numbers for the corresponding years in the following manner:

(113.6 - 109.6) / 109.6 * 100 = 3.6

Answer: 3.6%

3

Use the CPI numbers for the corresponding years in the following manner:

109.6 / 172.2 * 52,000 = 33,096

Answer: $33,000

4

Use the CPI numbers for the corresponding years in ...

#### Solution Summary

Step-by-step computations are shown for every problem using the Consumer Price Index (CPI).