algebra word problem on consumer price index?

Question

i'm having trouble with this word problem. i know there's 2-steps to solve it. thanks for the help.

table 1.2
year--> 1960, 1965, 1970, 1975, 1980, 1985, 1990, 1995, 2000
CPI--> 29.6, 31.5, 38.8, 53.8, 82.4, 107.6, 130.7, 153.5, 172.2

use table 1.2 to estimate the percent change in prices from 1965 to 1995. in 1965 a gallon of gas cost about $0.30. if this price had kept pace w/ the CPI, what would a gallon of gas have cost in 1995?

Answer 1

In 1965, the CPI was 31.5. In 1995, it was 153.5. You have to calculate the percent change over that time period. That is 153.5 / 31.5, which is ~487.3%. Now you have to apply that to the cost of a barrel of gas. In 1965, the cost was $0.30 dollars per gallon. In 1995, it should have been $0.30 * 4.873, which is ~$1.46 dollars per gallon.

Answer 2

You can find year by year % change as 1965/1960 = 31.5/29.6 = 1.064... = 106.4% so that 1965 prices were 106.4% of 1960 prices or increased by 6.4%

Find the increase from 1965 to 1995 then multiply the gas cost to see that gas is really cheap!!

Answer 3

it is an pleasing question.... Sally can end a million/2 of the interest in a million hours and Joseph can end a million/3 of the interest in a million hours. hence, a million/2+a million/3=a million/x 5/6=a million/x x=6/5 it will take them a million a million/5 hours or a million hour and 12 minutes paying for mutually. it really is, in the journey that they don't ought to argue about which expenses are extra constructive......

Answer 4

(153.5/31.5)(0.30)=$1.46