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Question: fix the basket at 3 footballs and 4 basketballs find...

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Fix the basket at 3 footballs and 4 basketballs.

Find the prices: SHOW ALL WORK.

Year

Price of Footballs

Price of Basketballs

1

$10

$12

2

$12

$15

3

$14

$18

1. Compute the Cost of the Basket

The cost in Year 1 =

The cost in Year 2 =

The cost in Year 3 =

2. Using Year 1 as the base year, compute the CPI for each year

CPI in Year 1 =

CPI in Year 2 =

CPI in Year 3 =

3. Using CPI, compute the inflation rate

Inflation Rate for Year 2 =

Inflation Rate for Year 3 =

4. Someone graduated from school and took his first job in 1982, which paid a salary of $15,000.

CPI in 1982 = 96.5 CPI in 2012 = 229.5 What is his salary in 2012 dollars? SHOW ALL WORK.

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