A part of the CPI table is given below: $$\begin{array} { l | l | l | l | l | l }
\text { Year } & 1975 & 1980 & 1985 & 1990 & 1995 \
\hline \text { CPI } & 53.8 & 82.4 & 107.6 & 130.7 & 152.4
\end{array}$$ Suppose an actuary's salary was $86,000 in 1995. What would the salary have to have been in 1975 if it had just kept up with inflation (round to the nearest $1000)?
A) $244,000
B) $30,000
C) $58,000
D) $128,000

Question

A part of the CPI table is given below: $$\begin{array} { l | l | l | l | l | l } 
\text { Year } & 1975 & 1980 & 1985 & 1990 & 1995 \
\hline \text { CPI } & 53.8 & 82.4 & 107.6 & 130.7 & 152.4
\end{array}$$ Suppose an actuary's salary was $86,000 in 1995. What would the salary have to have been in 1975 if it had just kept up with inflation (round to the nearest $1000)?
A) $244,000
B) $30,000
C) $58,000
D) $128,000

Quizplus · Accepted Answer

To find the equivalent salary in 1975, use the formula: Salary_1975 = (CPI_1975 / CPI_1995) * Salary_1995. Plugging in the values: (53.8 / 152.4) * 86,000 ≈ $30,000.

A Part of the CPI Table Is Given Below Suppose an Actuary's Salary Was $86,000 in 1995