Ask Question
4 July, 05:06

In 1931, President Herbert Hoover was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 1931 and 237 for 2015. President Hoover's 1931 salary was equivalent to a 2015 salary of а bout: a) $1,057,894. b) $16,080,001. c) $1,169,408. d) $4,965.

+5
Answers (1)
  1. 4 July, 07:54
    0
    Answer: c) $1,169,408.

    Explanation:

    Given the following:

    Consumer price index (CPI):

    Year 1 = 1931 = 15.2

    Year 2 = 2015 = 237

    Salary in 1931 = $75,000

    Equivalent salary in 2015 Given the details above:

    Salary in 1931 * (CPI for year 2 (2015) / CPI for year 1 (1931))

    $75,000 * (237 / 15.2)

    = $75,000 * 15.592105

    = $1,169,407.8

    = $1,169,408
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In 1931, President Herbert Hoover was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 1931 and 237 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers