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.

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Business

Lukas Scott

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.

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Answers (1)

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Yadira Oconnell · Answer 1

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