Question

Andrew is offered a job in Little Rock, where the CPI is 80, and a job in New York, where the CPI is 125. Andrew's job offer in Little Rock is for $42,000. How much does the New York job have to pay in order for the two salaries to represent about the same purchasing power?

Answer 1

Answer:

The job in New York should offer $65,625.

Explanation:

Andrew is offered a job in Little Rock, where the CPI is 80, and a job in New York, where the CPI is 125.  

Andrew's job offer in Little Rock is $42,000.  

To represent the same purchasing power salary in New York should be

= $\frac{CPI\ in\ New\ York}{CPI\ in\ Little\ Rock}\ \times\ Salary\ in\ Little\ Rock$

= $\frac{125}{80}\ \times\ \ 42,000$

= $65,625