Investments

1. (1 point) Jenny bought a house in 1965 for $67,071 and sold it in 1994. (a) If the 1965 CPI is 31.5 and the 1994 CPI is 148.2 how much would the house be worth in 1994 dollars? Answer: $ (b) To the nearest hundredth, what is the scaling factor for converting 1965 dollars to 1994 dollars? Answer: (c) If the 2001 CPI is 177.7, how much is the house worth in 2001 dollars? Answer: $