There is also a question below that last one which says "if you saved $100 in 2004, how much interest would you have to earn in order for the savings to have the same purchasing power in 2005?"

Goods Price in 1967 Price in 2012 Percent Change in 1967 Price in 2012 (nominal price) (nominal price) Price Dollars (real price) Movie Ticket $1.27 $7.92 McDonald Big 50.45 54.3 Mac 1.Which itern had the largest percent increase in price? 2. What does a 500 percent increase in price from 1967 to 2012 mean? 3. Prices seem so low in 1967. Were people much better off then? What else would you need to know to draw a conclusion? Goods Nominal Price CPI (1967) Nominal Price CPI (2012) Converting (1967) (2012) Grandpa's Prices: 1967 Price x (2012 CPI/1967 CPI) Movie Ticket $1.27 $7.92 McDonald's 50.45 $4.33 Big Mac 4.Go to the Minneapolis FED website: http:/www.minneapolisfed.org/community_education/teachericalc/hist1913.cfm. Find the 1967 CPI and the 2012 CPI. Enter these in Table 17.2-B. 5. How many times higher is the CPI in 2012 than the CPI in 1967? What does 2012 CPI/1967 CPI equal? 6.Use these CPI figures to convert the 1967 nominal prices of movie tickets and Big Macs. into the real prices expressed in terms of 2012 prices. 7.Now that you have converted the 1967 nominal prices into 2012 prices, you can compare prices in your grandfather's day to the prices you pay today. What conclusions can you draw about movie ticket prices over the past 35 years? 8.What condusions can you draw about Big Mace prices over the past 35 years? CPI (Year 1) CPI [Year 2) Calculations Inflation Rate from Preceding fear 2005 2012 1.If you earned $10 an hour in 1994, how much would you have to earn in 1995 for your wage to have the same purchasing power