413.1
1.The incredibly crappy movie, "Titanic" has grossed $1,835,300,000 worldwide (in 1998 dollars), making it number one on the top grossing movies list. Assume that Star Wars grossed about $300,000,000 in 1977 (when it was mistakenly not awarded Best Picture) and $480,000,000 in 1997 when it was re-released. Accounting for an inflation rate of 3% per year, what real amount (in 1977 dollars) has Titanic grossed? Has it earned more than Star Wars has (in real terms) in its two releases? (6)
The $1,835,300,000 that Titanic earned has to be deflated to undo the effects of inflation. In terms of 1977 dollars, it earned ($1,835,300,000)/(1.03)^21 =$986,564,186. In terms of 1977 dollars, the re-release of Star Wars earned 480,000,000/(1.03)^20=$265,764,362. So the total earned by Star Wars ($265,764,362 + $300,000,000) is still less than that earned by Titanic. Oh, the humanity.