A person has just been awarded an income increase to offset the effects of an increase in the overall cost of living in his coun

Question

2 years ago

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A person has just been awarded an income increase to offset the effects of an increase in the overall cost of living in his coun

try. This increment is tied to the consumer price index (CPI), which recently escalated from 110 to 112. What should his new salary be if he was earning $30,000 per year before the increase in the CPI

Business

1 answer:

ArbitrLikvidat [17] · Answer 1 · 2023-05-26T22:16:37+03:00

The person's new salary based on the new CPI of 112 should be $30,545.

<h3>What is the consumer price index (CPI)?</h3>

The Consumer Price Index (CPI) is an aggregate measure of the average price changes over time for a market basket of consumer goods and services. The index is used by businesses, governments, and individuals to gauge the inflation trend in the economy.

Data and Calculations:

Old CPI = 110

New CPI = 112

Old salary = $30,000

New salary = $30,545 ($30,000/110 x 112)

Thus, the person's new salary based on the new CPI of 112 should be $30,545.

Learn more about the consumer price index (CPI) at brainly.com/question/24888747