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[Guest]

In 1927, an item cost $525. In today's dollars, it would cost \$7500.

2023 - 1927 = 96 years.

What is the formula or steps to determine today's cost ?

[Guest]

Inflation is $\left(\left(\frac{\text{Today's Cost}}{\text{Historical Cost}}\right)^{\frac{1}{\text{Number of Years}}} - 1\right) \times 100$

Now, you can calculate X:

$X =\left(\left(\frac{\$7500}{\$525}\right)^{\frac{1}{96}} - 1\right) × 100$

$X \approx (14.2857 - 1) × 100$

$X \approx 13.2857%$

[Guest]

Ok, Thanks.