Question

Increasing prices erode the purchasing power of the dollar. It is interesting to compute what goods would have cost at some point in the past after adjusting for inflation. Go to http://minneapolisfed.org/index.cfm. What would a car that costs $\$22,000$today have cost the year you were born?

Short answer

The car would have cost only$\$4,432.6\$.$

Step-by-step solution

To determine

When one was born, the price of a car that cost$\$22,000$ .

Explanation

To determine the past worth of the current cost of the car, go to the minneapolisfed website. On the website, a financial calculator was employed. Put$2017$in the current year and the amount in the appropriate field, as well as the year in the next row to the year he was born, and then press the calculator button. In $1997$, one of them was born. As a result, a car that costs $\$22,000$now would have cost $\$14,432.6$in $1997.$

As a result, the car would only have cost$\$14,432.6$