Arlo is offered a job in Des Moines,where the CPI is 80,and a job in New York,where the CPI is 125.Arlo's job offer in Des Moines is for $42,000.How much does the New York job have to pay in order for the two salaries to represent the same purchasing power?
A)$42,000
B)$65,625
C)$68,880
D)$189,000

Question

Quizplus · Accepted Answer

To maintain the same purchasing power, the salary in New York should be adjusted for the difference in CPI. The formula is: New York Salary = Des Moines Salary * (New York CPI / Des Moines CPI). So, $42,000 * (125 / 80) = $65,625.

Arlo Is Offered a Job in Des Moines,where the CPI