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vodomira [7]
4 years ago
9

Mark's wage contract specifies a $50,000 salary for the first year, and specifies a salary increase equal to the percentage incr

ease in the CPI during the second year. The increase in the CPI during the year was 4.0%. If the CPI overstates inflation by 1.0% (that is, the actual price increase was 3% and not 4%), at the end of the first year Mark's salary increased by $________ more than it would have without the upward bias.
Business
1 answer:
belka [17]4 years ago
4 0

Answer:

$500

Explanation:

Data provided in the question

Salary for the first year = $50,000

CPI increase during the year = 4%

Overstated inflation = 1% i.e 5%

The computation of the increased in salary is shown below:

= Salary of the first year × inflation rate - salary of the first year × CPI increase during the year

= $50,000 × 5% - $50,000 × 4%

= $2,500 - $2,000

= $500

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What precautions does the government take to protect money?
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How did the market economy and westward expansion intensify the institution of slavery?
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Which banker would a software company most likely visit for help to raise large amounts of capital to acquire, or buy out anothe
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5 0
3 years ago
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Ray Of Light [21]

Answer:

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Explanation:

Year              Cash flow                Accumulated cash flows

0                    -$4,900                            -$4,900

1                       $1,150                             -$3,750

2                      $1,350                            -$2,400  

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