if a pair of sneakers cost $33 in 1970 use the inflammation rate of 462.1% to estimate the cost of sneakers in 2010
sweetysiri92:
And the answer is $185.50
Please answer ny question urgent
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Cost of sneakers in 1970 = $33
As the years progressed, like the interest on a principal saved in the bank, the costs of goods increase. Inflation is the percentage increase in the cost of goods. This is a simple understanding of inflation, for our purpose.
Between 1970 and 2010 the total cumulative inflation is estimated as 462.1% of the rate in 1970. Rate in 1970 is taken as the base. It is like compound interest accumulated for 40 years.
The increase in price (Escalation) of sneakers from 1970 to 2010:
( 462.1/100) * $33 = $ 4.621 * 33
So the total price : 1970 price + escalation or increase
= $ 33 + 4.621 * $ 33 = $33 * 5.621
= $ 185.493 = $185.50 (after rounding to 2nd digit)
As the years progressed, like the interest on a principal saved in the bank, the costs of goods increase. Inflation is the percentage increase in the cost of goods. This is a simple understanding of inflation, for our purpose.
Between 1970 and 2010 the total cumulative inflation is estimated as 462.1% of the rate in 1970. Rate in 1970 is taken as the base. It is like compound interest accumulated for 40 years.
The increase in price (Escalation) of sneakers from 1970 to 2010:
( 462.1/100) * $33 = $ 4.621 * 33
So the total price : 1970 price + escalation or increase
= $ 33 + 4.621 * $ 33 = $33 * 5.621
= $ 185.493 = $185.50 (after rounding to 2nd digit)
thanks. u r welcom
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