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Brilliant_brown [7]
3 years ago
6

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?
Business
1 answer:
RSB [31]3 years ago
7 0

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

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