Using CPI to Adjust for Inflation

11. Gross Domestic Product (GDP) and Consumer Price Index (CPI) / Using CPI to Adjust for Inflation / Problem 4

Problem 4

A movie ticket cost \$5 in 1990 when the CPI was 130.7. If the CPI in 2020 is 258.8, what is the equivalent cost of the movie ticket in 2020 dollars?

\$10.00

\$9.90

\$8.00

\$7.50