MATH 110 Lecture 6: MATH 110 lecture 6
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Math 110 lecture 6 consumer price index (cpi) This is a chart of annual indices used to calculation inflation. Using the cpi model to find the inflation. Plug the above numbers in to their respective variables. Using a cpi chart, plug in the numbers for december of 1981 and december of 2009. This number here tells us that, in 2009, gas was at least . 86/gallon. Person 1 made . 20/hr in 1970, person 2 made . 30/hr in 2000. To solve this, we need to inflate person 1"s wages to what they would be in the year. Again using a cpi chart, plug in the numbers from december of 2000 and december of 1970. Comparing . 84/hr to . 30/hr, it is obvious that person 2 makes more money. Reminder: use the equation from lecture 5 pg 1 for finding percentage increase. valuenew = valueold x (1 + r)
