A worker received $5 for a daily wage in 1930.What is the value of that wage today if the CPI was 17 in 1930 and is 230 today?
A)37 cents
B)$4.63
C)$67.65
D)$37.86

Question

Quizplus · Accepted Answer

The correct answer is C) $67.65.The CPI (Consumer Price Index) measures the change in the price of goods and services over time. In this case, the CPI was 17 in 1930 and is 230 today. This means that the cost of living has increased by a factor of 230/17 = 13.53 since 1930. Therefore, the value of the $5 daily wage in 1930 is $5 x 13.53 = $67.65 today.

A Worker Received $5 for a Daily Wage in 1930