What is the purchasing power of $1 in 1986 in terms of 2018 dollars? The purchasing power of $1 in 1986 in terms of 2018 dollars is $ (Round to the nearest cent as needed.) Year 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 CPI 90.9 96.5 99.6 103.9 107.6 109.6 113.6 118.3 124.0 130.7 136.2 140.3 144.5 148.2 Average Annual Consumer Price Index (CPI) (1982-1984 = 100) CPI Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 152.4 156.9 160.5 163.0 166.6 172.2 177.1 179.9 184.0 188.9 195.3 201.6 207.3 215.3 Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CPI 214.5 218.1 224.9 229.6 233.0 236.7 237.0 240.0 245.1 251.1 255.7 258.8
What is the purchasing power of $1 in 1986 in terms of 2018 dollars? The purchasing power of $1 in 1986 in terms of 2018 dollars is $ (Round to the nearest cent as needed.) Year 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 CPI 90.9 96.5 99.6 103.9 107.6 109.6 113.6 118.3 124.0 130.7 136.2 140.3 144.5 148.2 Average Annual Consumer Price Index (CPI) (1982-1984 = 100) CPI Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 152.4 156.9 160.5 163.0 166.6 172.2 177.1 179.9 184.0 188.9 195.3 201.6 207.3 215.3 Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CPI 214.5 218.1 224.9 229.6 233.0 236.7 237.0 240.0 245.1 251.1 255.7 258.8
Advanced Engineering Mathematics
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ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
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![### Understanding Purchasing Power and the Consumer Price Index
#### What is the purchasing power of $1 in 1986 in terms of 2018 dollars?
To determine the purchasing power of $1 from the year 1986 converted to its equivalent value in 2018 dollars, we utilize the Consumer Price Index (CPI), which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
#### Step-by-Step Calculation Method:
To find the purchasing power of a past dollar amount in current terms, you can use the CPI values for the respective years. The general formula is:
\[ \text{Purchasing Power in } 2018 \text{ dollars} = \text{Amount in } 1986 \text{ dollars} \times \left( \frac{\text{CPI in } 2018}{\text{CPI in } 1986} \right) \]
Given Data:
- CPI in 1986: \( 109.6 \)
- CPI in 2018: \( 251.1 \)
Therefore, the purchasing power of $1 in 1986 in terms of 2018 dollars is calculated as:
\[ 1 \text{ dollar} \times \left( \frac{251.1}{109.6} \right) \approx 2.29 \text{ dollars} \]
Thus, the purchasing power of $1 in 1986 in terms of 2018 dollars is approximately $2.29.
### Average Annual Consumer Price Index (CPI) Data from 1981 to 2020
The table below provides the CPI data for selected years ranging from 1981 to 2020. The base period is set to 1982-1984 = 100.
| Year | CPI | Year | CPI | Year | CPI |
|------|-------|------|-------|------|-------|
| 1981 | 90.9 | 1995 | 152.4 | 2009 | 214.5 |
| 1982 | 96.5 | 1996 | 156.9 | 2010 | 218.1 |
| 1983 | 99.6 | 1997 | 160.5 | 2011 | 224.9 |
| 1984 | 103.9 | 1998 |](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd357b89a-d63d-400d-a75c-5f74a0421e19%2Fd9483aec-3fc7-4c41-ac75-8c7f23930a47%2Flbs2vx6_processed.png&w=3840&q=75)
Transcribed Image Text:### Understanding Purchasing Power and the Consumer Price Index
#### What is the purchasing power of $1 in 1986 in terms of 2018 dollars?
To determine the purchasing power of $1 from the year 1986 converted to its equivalent value in 2018 dollars, we utilize the Consumer Price Index (CPI), which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
#### Step-by-Step Calculation Method:
To find the purchasing power of a past dollar amount in current terms, you can use the CPI values for the respective years. The general formula is:
\[ \text{Purchasing Power in } 2018 \text{ dollars} = \text{Amount in } 1986 \text{ dollars} \times \left( \frac{\text{CPI in } 2018}{\text{CPI in } 1986} \right) \]
Given Data:
- CPI in 1986: \( 109.6 \)
- CPI in 2018: \( 251.1 \)
Therefore, the purchasing power of $1 in 1986 in terms of 2018 dollars is calculated as:
\[ 1 \text{ dollar} \times \left( \frac{251.1}{109.6} \right) \approx 2.29 \text{ dollars} \]
Thus, the purchasing power of $1 in 1986 in terms of 2018 dollars is approximately $2.29.
### Average Annual Consumer Price Index (CPI) Data from 1981 to 2020
The table below provides the CPI data for selected years ranging from 1981 to 2020. The base period is set to 1982-1984 = 100.
| Year | CPI | Year | CPI | Year | CPI |
|------|-------|------|-------|------|-------|
| 1981 | 90.9 | 1995 | 152.4 | 2009 | 214.5 |
| 1982 | 96.5 | 1996 | 156.9 | 2010 | 218.1 |
| 1983 | 99.6 | 1997 | 160.5 | 2011 | 224.9 |
| 1984 | 103.9 | 1998 |
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