10.

John Wong makes $63,800 per year maintaining a self-storage business.

He was notified of a 3.3% raise in a year in which the CPI index increased

by 4.4%.

Find the gain or loss in his purchasing power.

loss of $701.80

gain of $701.80

loss of $2105.40

gain of $2105.40

Question

Mathematics

Kelvin Copeland

4 January, 08:30

10.

John Wong makes $63,800 per year maintaining a self-storage business.

He was notified of a 3.3% raise in a year in which the CPI index increased

by 4.4%.

Find the gain or loss in his purchasing power.

loss of $701.80

gain of $701.80

loss of $2105.40

gain of $2105.40

+5

Answers (1)

Know the Answer?

Bogey · Answer 1

Answer: loss of 701.80

Explanation:

Salary of John = 63,800

Raise in salary is 3.3%

New salary = (3.3%) (63800) = (3.3) (63800) / 100 = 2105.4

Since, Cpi index has raise of 4.4%

So for keeping the purchasing power same, updated salary should have been (4.4%) (63800) = (4.4) (63800) / 100 = 2807.2

So, change in salaries is (2807.2 - 2105.4) = 701.80

He is in loss as he got raise less than the CPI index.

10.John Wong makes $63,800 per year maintaining a self-storage business.He was notified of a 3.3% raise in a year in which the CPI index increasedby 4.4%.Find the gain or loss in his purchasing power.loss of $701.80gain of $701.80loss of $2105.40gain of $2105.40

10.

John Wong makes $63,800 per year maintaining a self-storage business.

He was notified of a 3.3% raise in a year in which the CPI index increased

by 4.4%.

Find the gain or loss in his purchasing power.

loss of $701.80

gain of $701.80

loss of $2105.40

gain of $2105.40