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From 1980 to 1990 the consumer price index increased from 82.4 to 130.7 if a bottle of dish soap cost 0.74 in 1980 and the price of dish soap increased at the same rate as the cpi from 1980 to 1990 by approximately how much did the price of the bottle of dish soap increase from 1980 to 1990

Respuesta :

Answer:

$0.43

Step-by-step explanation:

Rate of increase = [(CPI in 1990 / CPI in 1980)^1/t] - 1

(130.7 / 82.4)^1/10

1.586165^0.1 = 1.047213 - 1  = 4.72%

Price of dish soap in 1990 = value in 1980 ( 1 + rate of increase)^10

0.74( 1.047213)^10 = 1.174

Price increase 1.174 - 0.74 = 0.43

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