1. Create a consumer price index (CPI) table. 2. Use a CPL table to compare prices from different time periods In October 1996, the Nintendo 64 was released for $199. Then in March 2017, the Nintendo Switch was relesed for $299. The price of a new console has increased by 50%, but how much of that is due to inflation. If we factor inflation, has the price gone up, gone down, or stayed the same? A CPI table will help us answer this question Let's start by opening the Excel template. Step 1: Make October 1996 the base time period Put a l in 215. Step 2: Use Z15 to compute the CPI forlohe months after October 1996 CPI for the current month (FV) can be calculated as using compound interest formula PV = PV (1+) where PV is the CPI in the previous month, r'is the inflation rate for the current month, m = 12 (monthly), and t=1/12 (one month) Calculate the CPI for November 1996 (AA15) using the compound interest formula - 215 (1445/100) Copy Cell AA 15 and paste to all of the cells to the right and below notice that a problem occurs on the first row below Open the formula for January 1997 (Q16) and change the PV to December 1996 (ABIS) Dung Q16 down to all of the January cells below (Q17 to Q37) Delete CPI values for March 2018 to December 2018 (since we do not have inflation rates for those 1. Create a consumer price index (CPI) table. 2. Use a CPL table to compare prices from different time periods In October 1996, the Nintendo 64 was released for $199. Then in March 2017, the Nintendo Switch was relesed for $299. The price of a new console has increased by 50%, but how much of that is due to inflation. If we factor inflation, has the price gone up, gone down, or stayed the same? A CPI table will help us answer this question Let's start by opening the Excel template. Step 1: Make October 1996 the base time period Put a l in 215. Step 2: Use Z15 to compute the CPI forlohe months after October 1996 CPI for the current month (FV) can be calculated as using compound interest formula PV = PV (1+) where PV is the CPI in the previous month, r'is the inflation rate for the current month, m = 12 (monthly), and t=1/12 (one month) Calculate the CPI for November 1996 (AA15) using the compound interest formula - 215 (1445/100) Copy Cell AA 15 and paste to all of the cells to the right and below notice that a problem occurs on the first row below Open the formula for January 1997 (Q16) and change the PV to December 1996 (ABIS) Dung Q16 down to all of the January cells below (Q17 to Q37) Delete CPI values for March 2018 to December 2018 (since we do not have inflation rates for those