Alright, let's determine how much purchasing power [tex]$1,000 in 2010 would have in 2015, accounting for inflation based on the Consumer Price Index (CPI) values.
1. Identify the CPI values for 2010 and 2015:
- CPI for 2010: 216.687
- CPI for 2015: 233.707
2. Understand the question setup:
We need to calculate how much an amount of $[/tex]1,000 from 2010 would be worth in 2015 dollars. This means we want to adjust the [tex]$1,000 for the inflation between 2010 and 2015.
3. Formula to calculate equivalent value:
The formula to calculate the value adjusted for inflation is:
\[
\text{Equivalent amount in 2015} = \text{Amount in 2010} \times \left( \frac{\text{CPI in 2015}}{\text{CPI in 2010}} \right)
\]
4. Plugging in the values:
\[
\text{Equivalent amount in 2015} = 1000 \times \left( \frac{233.707}{216.687} \right)
\]
5. Perform the division part first:
\[
\frac{233.707}{216.687} \approx 1.078546
\]
6. Multiply this factor with the amount from 2010:
\[
1000 \times 1.078546 \approx 1078.55
\]
7. Conclusion:
The purchasing power of $[/tex]1,000 in 2010 would amount to approximately [tex]$1,078.55 in 2015.
Therefore, the correct answer among the given choices is:
B. $[/tex]1,078.55
