Gas is $3.28 per gallon. Find the CPI using the 1995 price as the reference value. In 1995, the cost of gasoline was 120.5 cents per gallon.?

1 Answer

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  • 328/120.5 = (1 + i)^(2019 - 1995)

    656/241 = (1 + i)^24

    (656/241)^(1/24) = 1 + i

    i = (656/241)^(1/24) - 1

    i = ‭0.04260615201014850656343470136162‬....

    4.26%, roughly

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