Questions: The median value of houses sold in the state of Indiana in 2011 was approximately 130,000. What was the comparable median house value in 1995, assuming the housing market followed inflation? Use the CPI table in your book. Round your answer to the nearest cent.

The median value of houses sold in the state of Indiana in 2011 was approximately 130,000. What was the comparable median house value in 1995, assuming the housing market followed inflation? Use the CPI table in your book. Round your answer to the nearest cent.
Transcript text: 1 pts The median value of houses sold in the state of Indiana in 2011 was approximately $\$ 130,000$. What was the comparable median house value in 1995 , assuming the housing market followed inflation? Use the CPI table in your book. Round you answer to the nearest cent. $\square$
failed

Solution

failed
failed

Solution Steps

To find the comparable median house value in 1995, we need to adjust the 2011 median value for inflation using the Consumer Price Index (CPI) values for 1995 and 2011. The formula to adjust for inflation is:

\[ \text{Value in 1995} = \text{Value in 2011} \times \left(\frac{\text{CPI in 1995}}{\text{CPI in 2011}}\right) \]

Solution Approach
  1. Obtain the CPI values for 1995 and 2011 from the CPI table.
  2. Use the formula to calculate the adjusted house value for 1995.
  3. Round the result to the nearest cent.
Step 1: Obtain CPI Values

From the CPI table, we have:

  • \( \text{CPI}_{1995} = 152.4 \)
  • \( \text{CPI}_{2011} = 224.9 \)
Step 2: Use the Inflation Adjustment Formula

We apply the inflation adjustment formula to find the comparable median house value in 1995: \[ \text{Value}_{1995} = \text{Value}_{2011} \times \left(\frac{\text{CPI}_{1995}}{\text{CPI}_{2011}}\right) \] Substituting the known values: \[ \text{Value}_{1995} = 130000 \times \left(\frac{152.4}{224.9}\right) \]

Step 3: Calculate the Value

Calculating the right-hand side: \[ \text{Value}_{1995} = 130000 \times 0.6780 \approx 88092.4855 \] Rounding to the nearest cent gives: \[ \text{Value}_{1995} \approx 88092.49 \]

Final Answer

The comparable median house value in 1995 is \\(\boxed{88092.49}\\).

Was this solution helpful?
failed
Unhelpful
failed
Helpful

Questions asked by other users

failedAnswered
A manufacturer finds that the revenue generated by selling (x) units of a certain commodity is given by the function (R(x)=60 x-0.5 x^2), where the revenue (R(x)) is measured in dollars. What is the maximum revenue, and how many units should be manufactured to obtain this maximum? (), at units
failedAnswered
Which two details are most important to include in a summary of the paragraph? excerpt from Frankenstein by Mary Shelly Six years have passed since I resolved on my present undertaking. I can, even now, remember the hour from which I dedicated myself to this great enterprise. I commenced by inuring my body to hardship. I accompanied the whale-fishers on several expeditions to the North Sea; I voluntarily endured cold, famine, thirst, and want of sleep; I often worked harder than the common sailors during the day and devoted my nights to the study of mathematics, the theory of medicine, and those branches of physical science from which a naval adventurer might derive the greatest practical advantage. Twice I actually hired myself as an under-mate in a Greenland whaler, and acquitted myself to admiration. I must own I felt a little prouc when my captain offered me the second dignity in the vessel and entreated me to remain with the greatest earnestness, so valuable did he consider my services.
failedAnswered
What is the molecular shape of COCl2? linear bent tetrahedral trigonal pyramidal trigonal planar The C-Cl bond in COCl2 is What is the Cl-C-Cl bond angle? 120° 180° <109.5° 109.5° The molecule COCl2 is nonpolar. polar
failedAnswered
lim as t approaches π of (cos(t)i - 9sin(-t/2)j + t/πk)
failedAnswered
To rent a certain meeting room, a college charges a reservation fee of 47 and an additional fee of 8.40 per hour. The history club wants to spend less than 89.00 on renting the meeting room. What are the possible amounts of time for which they could rent the meeting room? Use t for the number of hours the meeting room is rented, and solve your inequality for t.