Suppose that the price index in 1999 was 170 and your salary was $44,000. Suppose in 2016 the consumer price index will be 290.

Question

3 years ago

9

What salary will you have to earn in 2016 in order to equal your 1999 real income

1 answer:

STatiana [176] · Answer 1 · 2022-02-01T05:47:28+03:00

Answer:

$75,240

Explanation:

Given that,

Consumer price index in 1999 = 170

Salary in 1999 = $44,000

Consumer price index in 2016 = 290

Therefore, the required salary is calculated as follows:

= Salary in 1999 × (Consumer price index in 2016 ÷ Consumer price index in 1999)

= $44,000 × (290 ÷ 170)

= $44,000 × 1.71

= $75,240

Hence, the amount of salary have to earn in 2016 in order to equal your 1999 real income is $75,240.