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The median value of houses sold in the state of Indiana in 2011 was approximately $130,000. If the housing market follows inflation, what would a comparable median house value be in 1986 dollars?
Express your answer rounded to the nearest cent.

 

1986 CPI: 109.600

2011 CPI: 224.939

 Feb 7, 2023
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2011  -  1986 ==25 years

 

In that period of 25 years, the inflation rate went up by:

 

224.939 / 109.60 ==2.05236314 - or more than doubled

 

$130,000 / 2.05236314 ==$63,341.62 - average price of a house in 1986 dollars.

 Feb 7, 2023

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