Question

II.21. Affording a Mercedes. A Mercedes-Benz 190 cost $24,000 in 1981, when the average CPI (1982–84 = 100) was 90.9. The average CPI for 2014 was 236.7. How many 2014 dollars must you earn to have the same buying power as $24,000 had in 1981? (Hint: See page 372.)