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In 1984, a school bus cost $20,000. To answer each of the parts below, assume that the consumer price index (CPI) was 36.8 in 1970, 100 in 1984, and 140.7 in 1992.
Problem 1: If the price of a school bus increased at the same rate as the CPI from 1970 to 1984, how much did a school bus cost 1970? By how much did the price of a school bus increase from 1970 to 1984?
Problem 2: If the price of a school bus increased at the same rate as the CPI from 1984 to 1992, how much did a school bus cost in 1992? By how much did the price of a school bus increase from 1984 to 1992?
Problem 3: If a school bus cost $4100 in 1950, and if the price of a school bus increased at the same rate as the CPI from 1950 to 1984, what was the CPI to the nearest tenth in 1950?
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