In 1983, a year-long newspaper subscription cost $12.75. Today, a year-long newspaper subscription costs $28.50. If the CPI is 193, what is the relation of the actual price of a year-long newspaper subscription to the expected price, to the nearest cent? a. The actual price is $14.79 higher than the expected price. b. The actual price is $3.89 higher than the expected price. c. The actual price is $9.20 lower than the expected price. d. The actual price is $11.86 lower than the expected price
Accepted Solution
A:
Based on the CPI, the expected price is $12.75 * 193/100 = $24.61
The actual price is $28.50 -24.61 = $3.89 more than expected. The appropriate choice is ... b. The actual price is $3.89 higher than the expected price.