Question
A house in 1990 was $150,000 while it was $200,000 in 1999. Some of the increase may have been due to inflation. The house owner
A house in 1990 was $150,000 while it was $200,000 in 1999. Some of the increase may have been due to inflation. The house owner would like to know if his property value has appreciated after adjusting for inflation. He tries to calculate both prices of his house in 1990 and 1999 in terms of 2003 dollar. Suppose CPI was 100 in 1990, 125 in 1999 and 200 in 2003
How much is a 1999 house worth in 2003 dollar?
| A. | $300,000 | |
| B. | $125,000 | |
| C. | $320,000 | |
| D. | $200,000 |
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Contemporary Mathematics
Authors: OpenStax
1st Edition
1711470554, 978-1711470559
