CPI Percent Change since 1950 1950 25.0 1960 29.8 + 19.2% + 59.2 1970 39.8 1980 86.3 +245.2 1990 133.8 +435.2 2000 174.0 +596.0 2010 219.2 +776.8 2017 246.5 +886.0
CPI Percent Change since 1950 1950 25.0 1960 29.8 + 19.2% + 59.2 1970 39.8 1980 86.3 +245.2 1990 133.8 +435.2 2000 174.0 +596.0 2010 219.2 +776.8 2017 246.5 +886.0
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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Question
An engineer in 1950 was earning $6,200 a year. In 2017 she earned $82,000 a year. However, on average prices in 2017 were higher than in 1950. What was her real income 2017 in terms of constant 1950 dollars?
See table attached

Transcribed Image Text:CPI
Percent Change since 1950
1950
25.0
1960
29.8
+ 19.2%
1970
39.8
+ 59.2
1980
86.3
+245.2
1990
133.8
+435.2
2000
174.0
+596.0
2010
219.2
+776.8
2017
246.5
+886.0
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