The FRED CPI Index (Table 15–3) can be used to predict the price of household items over the years. In 2011, Sandy and Malcolm purchased a combo clothes washing machine and dryer for $800. Assume it is now 2018 and the combo system has experienced a serious failure and must be replaced immediately. If the CPI index continued to change at the same linear rate as it did between 2014 and 2015, estimate the cost of a similar combo washer and dryer in 2018.
 FIGURE 1.png)
Index in 2011 was 227.2
Index in 2014 was 236.5
Index in 2015 was 238.0
Difference from 2104 to 2015 was 1.5
Estimated index in 2018 is 238.0 + 3(1.5) = 242.5
C2018 = C2011(I2018/I2011)
= 800(242.5/227.2)
= $854
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