Question

Using the ROUND method to find the Constant Dollars for 2012, 1984 and 1995. You may need to floor or ceiling the method.

YEAR          RENTAL REVENUE         CPI              CONSTANT 2012 DOLLARS             CONSTANT 1984 DOLLARS         CONSTANT 1995 DOLLARS

1984              $13,366.55                   103.933

1985              $14,564.45                   107.600

1986              $15,487.57                   109.692

1987              $16,363.24                   113.617

1988              $17,161.30                   118.275

1989              $18,000.50                   123.942

1990              $18.379.25                   130.658

1991              $18,768.42                   136.167

1992              $19,026.90                   140.308

1993              $20,145.73                   144.475

1994              $21,099.88                   148.225

1995              $22,435.85                   152.383

1996              $23,575.86                   156.858

1997              $24,924.04                   160.525

1998              $26,636.09                    163.008

1999              $28,247.11                    166.583

2000              $29,829.21                    172.192

2001              $30,719.85                     177.042

2002              $30,417.06                     179.867

2003              $30,927.76                     184.000

2004              $33,056.72                     188.908

2005              $36,661.23                     195.267

2006              $39,770.85                     201.558

2007              $41,430.22                      207.344

2008              $40,823.03                      215.254

2009              $37,668.88                      214.567

2010              $36,647.82                      218.085

2011              $39,649.70                      224.935

2012              $40,892.75                      229.604

Please show your work, thank you.        

Answer 1

The table consists calculation of constant dollar of 2012, 1984 and 1995 using below formula

For example, 1984 rental revenue $13366.55, CPI = 103.933 and CPI in 2012 = 229.604

Hence, Constant 2012 dollars = $13366.55 * (229.604 / 103.933) = 29528.77

Same formula has been applied for all three constant dollar values.

Year	Rental revenue ($)	CPI	Constant 2012 ($)	Constant 1984 dollars ($)	Constant 1995 dollars ($)
1984	13366.55	103.933	29528.77	13366.55	19597.58
1985	14,564.45	107.600	31078.59	14068.09	20626.16
1986	15,487.57	109.692	32418.12	14674.45	21515.17
1987	16,363.24	113.617	33067.81	14968.54	21946.36
1988	17,161.30	118.275	33314.76	15080.32	22110.25
1989	18,000.50	123.942	33346.14	15094.53	22131.08
1990	18,379.25	130.658	32297.67	14619.93	21435.24
1991	18,768.42	136.167	31647.20	14325.48	21003.53
1992	19,026.90	140.308	31136.16	14094.16	20664.37
1993	20,145.73	144.475	32016.20	14492.52	21248.43
1994	21,099.88	148.225	32684.21	14794.90	21691.77
1995	22,435.85	152.383	33805.35	15302.40	22435.85
1996	23,575.86	156.858	34509.63	15621.20	22903.26
1997	24,924.04	160.525	35649.65	16137.24	23659.87
1998	26,636.09	163.008	37518.11	16983.02	24899.93
1999	28,247.11	166.583	38933.44	17623.69	25839.25
2000	29,829.21	172.192	39774.82	18004.55	26397.65
2001	30,719.85	177.042	39840.27	18034.17	26441.09
2002	30,417.06	179.867	38828.02	17575.97	25769.28
2003	30,927.76	184	38593.14	17469.65	25613.40
2004	33,056.72	188.908	40178.05	18187.08	26665.27
2005	36,661.23	195.267	43107.98	19513.34	28609.79
2006	39,770.85	201.558	45304.81	20507.76	30067.78
2007	41,430.22	207.344	45878.08	20767.26	30448.25
2008	40,823.03	215.254	43544.51	19710.95	28899.51
2009	37,668.88	214.567	40308.74	18246.23	26752.00
2010	36,647.82	218.085	38583.52	17465.29	25607.01
2011	39,649.70	224.935	40472.71	18320.46	26860.83
2012	40,892.75	229.604	40892.75	18510.59	27139.60