Explain in 1-5 sentences, solve the equation

In real life, when we make financial decisions, we also need to consider the inflation rate. The inflation affects the purchasing power of our money. For instance, suppose your bank pays you 5% interest in a year, but at the same time, the inflation is almost 5% in that year, then you virtually get nothing from your bank because the interest you get paid can barely compensate the loss of your purchasing power in that year. We can use Consumer Price Index (CPI) to measure the inflation of a specific country.

choose a specific year in the past. Use the following formula to show us what the price of the good today and what was the price in the year you choose based on your calculation:

price of crude oil today is $62.14

Past year price=( price year CP / current year CPI )current year price

CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS (CPI-U) (not seasonally adjusted) ALL ITEMS (1982-84=100) Jan Feb Mar Apr May Consumer Price Index U.S. City Average Jun Jul Aug Sep Oct Nov Dec 2011 220.223 221.309 223.467 224.906 225.964 225.722 225.672 225.922 226.545 226.889 226.421 226.230 229.104 230.379 231.407 231.317 230.221 2012 229.392 230.085 229.815 229.478 229.601 226.665 227.663 230.280 232.166 2013 232.773 232.531 232.945 233.504 233.596 233.877 234.149 233.546 233.069 233.049 2014 233.916 234.781 236.293 237.072 237.900 238.343 238.250 237.852 238.031 237.433 236.151 234.812 2015 233.707 234.722 236.119 236.599 237.805 238.638 238.654 238.316 237.945 237.838 237.336 236.525 241.018 240.628 240.849 241.428 241.729 241.353 241.432 2016 236.916 237.111 238.132 239.261 240.229 2017 242.839 243.603 243.801 244.524 244.733 244.955 244.786 2018 247.867 245.519 246.819 246.663 246.669 246.524 252.146 252.439 252.885 252.038 252.038 251.233 256.558 256.759 257.346 257.208 256.974 2019 248.991 249.554 250.546 251.588 251.989 252.006 252.776 254.202 255.548 256.092 256.143 256.571 258.678 258.115 256.389 256.394 257.797 259.101 251.712 2020 257.971 259.918 260.280 260.388 260.229 260.474 2021 261.582 263.014 264.877 267.054 269.195 271.696 273.003 273.567