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Jim N
Jim N asked in Social ScienceEconomics · 1 decade ago

What did it cost in 1950 dollars, if today it costs $3,500?

I found an item I remember from elementary school and was shocked at the cost. I never knew how much the school had paid, but I'm hoping to find the answer or the method of conversion to compare 1950 dollars to 2008 dollars.

Or, looking at it from the other direction, how much value has the dollar lost since 1950?

2 Answers

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  • Max R
    1 decade ago
    Favorite Answer

    You need to know the CPI (consumer price index) for 1950 and today (2008).

    basically, you can calculate it like this:

    (1950 CPI / 2008 CPI) x 2008 Cost = 1950 cost. So It's (1950 CPI/2008 CPI) x 3500 = 1950 cost .

    Reverse this equation (2008 CPI/1950 CPI) x 1950 cost = 2008 cost, will give you $3500.

    Source(s): "Principles of Macroeconomics" by Mankiw
  • Rupert Roo
    Lv 4
    1 decade ago

    $406.42 is the right answer. Check out this link below, it appears legit to me.

    Source(s): http://www.westegg.com/inflation/
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