Ask Question
27 March, 07:02

Sue Holloway was an accountant in 1944 and earned $12,000 that year. Her son, Josh Holloway, is an accountant today and he earned $210,000 in 2013. The price index was 17.6 in 1944 and 218.4 in 2013. In real terms, Sue Holloway's income amounts to about what percentage of Josh Holloway's income? A. 65.2 percent B. 11.0 percent C. 70.9 percent D. 114.7 percent

+2
Answers (1)
  1. 27 March, 07:29
    0
    Answer is C. 70.9 percent

    Explanation:

    Real income of Sue Holloway = Nominal Income / Price index

    = 12,000/17.6

    = 681.82

    Real income of Josh Holloway = Nominal Income / Price index = 210,000/218.4

    = 961.54

    Sue Holloway's income percentage as compared to Josh Holloway's income = 681.82/961.54 X 100

    = 70.9 percent
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Sue Holloway was an accountant in 1944 and earned $12,000 that year. Her son, Josh Holloway, is an accountant today and he earned $210,000 ...” 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