Answer:
The price of the peanut butter jar in 2000 is US$ 3.11 and it increased US$ 1.62 from 1980 to 2000. The correct answer is C. 1.62.
Step-by-step explanation:
1. Let's review all the information provided for solving this question:
Customer Price Index 1980 = 82.4
Customer Price Index 2000 = 172.2
Price of a peanut butter jar 1980 = US$ 1.49
Price of a peanut butter jar 2000 = x
Price increased at the same rate as the CPI
2. Using Rule of Three we will find the price of the peanut butter jar in 2000:
x * CPI 1980 = Price of the peanut butter jar in 1980 * CPI 2000
and now let's replace with the real values:
x * 82.4 = 1.49 * 172.2
x = (1.49 * 172.2)/82.4
x = 256.578/82.4
x = 3.1138
x = 3.11 Rounding to two decimal places
The price of the peanut butter jar in 2000 is US$ 3.11.
Now let's find how much it increased from 1980 to 2000:
Price in 2000 - Price in 1980
3.11 - 1.49 = 1.62
The price of the peanut butter jar in 2000 is US$ 3.11 and it increased US$ 1.62 from 1980 to 2000. The correct answer is C. 1.62.
