The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $26,000 per year fo
1 answer:
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Answer:
CPI washinton 100
CPI Austin 45
or
CPI Washinton 222
CPI Austin 100
Explanation:
We need a CPI that equalise the salary of 200,000 in Washington DC and the 90,000 in Austin Texas
if Washinton DC is the base, and their CPI is 100
how much does the CPI of Austin needs to be to make 200,000 in Washinton equal to 90,000 in Austin?
90,000/200,000 x 100 = CPI
CPI = 45
A CPI of 100 in Washinton
and a CPI of 45 in Austion make the two salaries have the same purchasing power.
If we use Austin as a base:
100/45 x 100 = 222.22222
Then the CPI for Austin is 100
and the CPI for Washinton 222