Your father tells you he earned $3.00 per hour when he was 16 in 1977;you remember making $6.00 per hour when you were 16 in 1999.Given that the CPI was 36.7 in 1969 and 166.1 in 2007,which of the following is the 2007 real equivalent of your father's hourly earnings when he was 16?
A)$4.48
B)$6.78
C)$13.58
D)$15.01

Question

Quizplus · Accepted Answer

To find the 2007 real equivalent of your father's earnings, adjust for inflation using the CPI. The formula is: (Old Wage * New CPI) / Old CPI. So, ($3.00 * 166.1) / 36.7 = $13.58.

Your Father Tells You He Earned $3