Given the following data of monthly salary of an employee : (i) Calculate the real monthly income for each year. (ii) In which year did the employee have the highest purchasing power? (iii) How much salary should he have earned in each of the years to give him the same purchasing power as in the year of his highest real income? year Monthly Salary ($) |Price Index (1997 = 100) 115 120 130 138 %3D 2000 15,000 2001 2002 2003 2004 15,500 16,000 16,500 17,000 18,000 144 2005 150

Given the following data of monthly salary of an employee : (i) Calculate the real monthly income for each year. (ii) In which year did the employee have the highest purchasing power? (iii) How much salary should he have earned in each of the years to give him the same purchasing power as in the year of his highest real income? year Monthly Salary ($) |Price Index (1997 = 100) 115 120 130 138 %3D 2000 15,000 2001 2002 2003 2004 15,500 16,000 16,500 17,000 18,000 144 2005 150

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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