High School

From 1980, the consumer price index increased from 100 to 250 to 181. If a pound of tomatoes cost $0.75 in 1980, and the price of tomatoes increased at the same rate as the CPI from 1980 to 2000, approximately how much did a pound of tomatoes cost in 2000?

Answer :

To find the approximate cost of a pound of tomatoes in 2000, multiply the price in 1980 by the CPI increase.

To find the approximate cost of a pound of tomatoes in 2000, we need to calculate the percentage increase in the CPI from 1980 to 2000 and apply that same increase to the price of tomatoes in 1980.

From the given information, the CPI increased from 1 to 2.5 to 181, which is a total increase of 181/2.5 = 72.4 times. If a pound of tomatoes cost $0.75 in 1980, we can multiply this price by 72.4 to find the approximate cost in 2000.

Cost in 2000 = $0.75 * 72.4 = $54.30

Therefore, the approximate cost of a pound of tomatoes in 2000 is $54.30.

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