Henri earned a salary of $50,000 in 2001 and $70,000 in 2006.The consumer price index was 177 in 2001 and 265.5 in 2006.Henri's 2006 salary in 2001 dollars is
A)$35,000.00.
B)$46,666.67.
C)$61,950.00
D)$105,000.00.

Question

Quizplus · Accepted Answer

To find Henri's 2006 salary in 2001 dollars, adjust for inflation using the consumer price index (CPI). The formula is: (2006 salary) * (2001 CPI / 2006 CPI) = $70,000 * (177 / 265.5) = $46,666.67.

Henri Earned a Salary of $50,000 in 2001 and $70,000