Use the Consumer Price Index below to answer the question. $$\begin{array}{l}
\text { Average Annual Consumer Price Index (1982-1984 = 100) }\
\begin{array} { c | c | c | c | c | c }
\text { Year } & \text { CPI } & \text { Year } & \text { CPI } & \text { Year } & \text { CPI } \
\hline 1986 & 109.6 & 1995 & 152.4 & 2004 & 188.9 \
1987 & 113.6 & 1996 & 156.9 & 2005 & 195.3 \
1988 & 118.3 & 1997 & 160.5 & 2006 & 201.6 \
1989 & 124.0 & 1998 & 163.0 & 2007 & 207.3 \
1990 & 130.7 & 1999 & 166.6 & 2008 & 215.3 \
1991 & 136.2 & 2000 & 172.2 & 2009 & 214.5 \
1992 & 140.3 & 2001 & 177.1 & 2010 & 218.1 \
1993 & 144.5 & 2002 & 179.9 & 2011 & 224.9 \
1994 & 148.2 & 2003 & 184.0 & 2012 & 229.6
\end{array}
\end{array}$$
-In 1991, the federal minimum hourly wage was $3.5. Convert this to 2000 dollars.
A)$4.55
B)$2.86
C)$4.43
D)$2.77

Question

Use the Consumer Price Index below to answer the question. $$\begin{array}{l}
\text { Average Annual Consumer Price Index (1982-1984 = 100) }\
\begin{array} { c | c | c | c | c | c } 
\text { Year } & \text { CPI } & \text { Year } & \text { CPI } & \text { Year } & \text { CPI } \
\hline 1986 & 109.6 & 1995 & 152.4 & 2004 & 188.9 \
1987 & 113.6 & 1996 & 156.9 & 2005 & 195.3 \
1988 & 118.3 & 1997 & 160.5 & 2006 & 201.6 \
1989 & 124.0 & 1998 & 163.0 & 2007 & 207.3 \
1990 & 130.7 & 1999 & 166.6 & 2008 & 215.3 \
1991 & 136.2 & 2000 & 172.2 & 2009 & 214.5 \
1992 & 140.3 & 2001 & 177.1 & 2010 & 218.1 \
1993 & 144.5 & 2002 & 179.9 & 2011 & 224.9 \
1994 & 148.2 & 2003 & 184.0 & 2012 & 229.6
\end{array}
\end{array}$$
-In 1991, the federal minimum hourly wage was $3.5. Convert this to 2000 dollars.
A)$4.55
B)$2.86
C)$4.43
D)$2.77

Quizplus · Accepted Answer

To convert the 1991 federal minimum hourly wage to 2000 dollars, use the formula: $$ \text{Amount in 2000 dollars} = \text{Amount in 1991 dollars} \times \frac{\text{CPI in 2000}}{\text{CPI in 1991}} $$ Substituting the given values: $$ $3.5 \times \frac{172.2}{136.2} = $3.5 \times 1.264 \approx $4.43 $$

Use the Consumer Price Index Below to Answer the Question