According to the National Baseball Hall of Fame, at the end of 1979, the pitcher Nolan Ryan signed with the Houston Astros on a contract that paid him $4.5million over four years. Let's assume this was split evenly over those years so that in 1980 Ryan earned $1.125 million. According the CNBC, pitcher Gerrit Cole signed for the New York Yankees for roughly $324 million over nine years at the end of 2019. Again, let's assume that is split evenly at $36 million a year. According to the bureau of labor statistics reproduced in the FRED database the average CPI for 1980 was 82.383. For 2020 it was 258.838. Is Cole better paid in 2020 than Ryan was in 1980?
According to the National Baseball Hall of Fame, at the end of 1979, the pitcher Nolan Ryan signed with the Houston Astros on a contract that paid him $4.5million over four years. Let's assume this was split evenly over those years so that in 1980 Ryan earned $1.125 million. According the CNBC, pitcher Gerrit Cole signed for the New York Yankees for roughly $324 million over nine years at the end of 2019. Again, let's assume that is split evenly at $36 million a year. According to the bureau of labor statistics reproduced in the FRED database the average CPI for 1980 was 82.383. For 2020 it was 258.838. Is Cole better paid in 2020 than Ryan was in 1980?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1.
According to the National Baseball Hall of Fame, at the end of 1979, the pitcher Nolan Ryan signed with the Houston Astros on a contract that paid him $4.5million over four years. Let's assume this was split evenly over those years so that in 1980 Ryan earned $1.125 million.
According the CNBC, pitcher Gerrit Cole signed for the New York Yankees for roughly $324 million over nine years at the end of 2019. Again, let's assume that is split evenly at $36 million a year.
According to the bureau of labor statistics reproduced in the FRED database the average CPI for 1980 was 82.383. For 2020 it was 258.838.
Is Cole better paid in 2020 than Ryan was in 1980?
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