Andrew is offered a job in Little Rock,where the CPI is 80,and a job in New York,where the CPI is 125.Andrew's job offer in Little Rock is for $42,000.How much does the New York job have to pay in order for the two salaries to represent about the same purchasing power?
A)$74,667
B)$65,625
C)$60,900
D)$52,500

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: (Salary in Little Rock) * (CPI in New York / CPI in Little Rock) = Equivalent Salary in New York. So, $42,000 * (125 / 80) = $65,625.

Andrew Is Offered a Job in Little Rock,where the CPI