The consumer price index for a new car in 1990 was 110.2, and in 1995 it was 136.5. If the price of the car was $12,880 in 1990, what was the price in 1995?
136/110.2 x $12880 = $15954
Compare the prices in 1995 with the 1990 price by getting ratio of the price indices and then multiply this fraction by the okd price to get the new price
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