An engineer in 1950 was earning $6,100 a year. In 2020, she earned $81,000 a year. However, on average, prices in 2020 were higher than in 1950. What was her real income in 2020 in terms of constant 1950 dollars? Use the data in Table 5.8. CPI % Change since 1950 1950 25.0 +19.2% 1960 29.8 +59.2% 1970 39.8 +245.2% 1980 86.3 +435.2% 1990 133.8 +596.0% 2000 174.0 +776.8% 2010 219.2 +948.1% 2020 262.0
An engineer in 1950 was earning $6,100 a year. In 2020, she earned $81,000 a year. However, on average, prices in 2020 were higher than in 1950. What was her real income in 2020 in terms of constant 1950 dollars? Use the data in Table 5.8. CPI % Change since 1950 1950 25.0 +19.2% 1960 29.8 +59.2% 1970 39.8 +245.2% 1980 86.3 +435.2% 1990 133.8 +596.0% 2000 174.0 +776.8% 2010 219.2 +948.1% 2020 262.0
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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An engineer in 1950 was earning $6,100 a year. In 2020, she earned $81,000 a year. However, on average, prices in 2020 were higher than in 1950. What was her real income in 2020 in terms of constant 1950 dollars? Use the data in Table 5.8. CPI % Change since 1950 1950 25.0 +19.2% 1960 29.8 +59.2% 1970 39.8 +245.2% 1980 86.3 +435.2% 1990 133.8 +596.0% 2000 174.0 +776.8% 2010 219.2 +948.1% 2020 262.0
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