In 1949, Sycamore, Illinois built a hospital for about $500,000. In 1987, the county restored the courthouse for about $2.4 million. A price index for nonresidential construction was 14 in 1949, 92 in 1987, and 114.5 in 2000. According to these numbers, the hospital cost about a. $4.1 million in 2000 dollars, which is more than the cost of the courthouse restoration in 2000 dollars. b. $4.1 million in 2000 dollars, which is less than the cost of the courthouse restoration in 2000 dollars. c. $3.6 million in 2000 dollars, which is more than the cost of the courthouse restoration in 2000 dollars. d. $3.6 million in 2000 dollars, which is less than the cost of the courthouse restoration in 2000 dollars.

Respuesta :

Answer:

a. $4.1 million in 2000 dollars, which is more than the cost of the courthouse restoration in 2000 dollars.

Explanation:

The computation is shown below;

Cost in 2000 dollars is

= $500,000 × (Price index in 2000  ÷ Price index in 1949)

= $500,000 × (114.5 ÷ 14)

= 40,89,285.71

= $4.1 million  

So overall we can see that the $4.1 million in the year 2000 more than the cost of the courthouse

Therefore the option a is correct