Suppose in the year 2000 Ken earned $60,000 per year.If the CPI in the year 2000 was 172.2 and in 2015 was 236.7,what is the minimum level of income Ken would have needed to earn in 2015 to have maintained the same standard of living he had in 2000?
A)$80,479
B)$81,237
C)$82,474
D)$83,623

Question

Suppose in the year 2000 Ken earned $60,000 per year.If the CPI in the year 2000 was 172.2 and in 2015 was 236.7,what is the minimum level of income Ken would have needed to earn in 2015 to have maintained the same standard of living he had in 2000?
A)​$80,479
B)$81,237
C)$82,474
D)$83,623

Quizplus · Accepted Answer

To maintain the same standard of living, Ken's income should increase in proportion to the CPI increase. The calculation is: $60,000 * (236.7 / 172.2) = $82,474.

Suppose in the Year 2000 Ken Earned $60,000 Per Year