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After Thanksgiving 2018, Jack Hirsh returned to his home to find that his TV-DVD unit was stolen. He bought this set for $950 in 2013. He was somehow relaxed, thinking that his good property insurance would replace the set with a new one, but his insurance agent told him that according to the office records, the value of his set would have depreciated to zero by December, 2022, and therefore the insurance would have to pay less than the replacement value (RV) that he wished for. The insurance company would pay him the Actual Cash Value (ACV) of his set. If the CPI's for 2013, 2018 are 140.5, 161.2 respectively,
Problem a: Calculate:
1) The RV, which Jack would wish to receive. 2) The ACV, which the insurance would be willing to pay. 3) The difference between the two values.
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