A part of the CPI table is given below: $$\begin{array} { | l | l | l | l | l | l | l | l | }
\hline \text { Year } & 1975 & 1980 & 1985 & 1990 & 1995 & 2000 & 2005 \
\hline \text { CPI } & 53.8 & 82.4 & 107.6 & 130.7 & 152.4 & 172.2 & 195.3 \
\hline
\end{array}$$ Suppose that a statistician's salary was $64000 in 1985. What would the salary have to be in 2005 to keep up with inflation (rounded to the nearest $1000)?
A) $125,000
B) $69,000
C) $116,000
D) $35,000

Question

A part of the CPI table is given below: $$\begin{array} { | l | l | l | l | l | l | l | l | } 
\hline \text { Year } & 1975 & 1980 & 1985 & 1990 & 1995 & 2000 & 2005 \
\hline \text { CPI } & 53.8 & 82.4 & 107.6 & 130.7 & 152.4 & 172.2 & 195.3 \
\hline
\end{array}$$ Suppose that a statistician's salary was $64000 in 1985. What would the salary have to be in 2005 to keep up with inflation (rounded to the nearest $1000)?
A) $125,000
B) $69,000
C) $116,000
D) $35,000

Quizplus · Accepted Answer

To adjust for inflation, use the formula: New Salary = Old Salary * (CPI in New Year / CPI in Old Year). So, $64,000 * (195.3 / 107.6) ≈ $116,000.

A Part of the CPI Table Is Given Below Suppose That a Statistician's Salary Was $64000 in 1985