recent college graduate has received the annual salaries shown in the following table over the past four years. During this time, the CPI has performed as indicated. Determine the annual salaries in year-zero dollars (b=0), using the CPI as the indicator of general price inflation. End of Year Salary (A$) CPI 1 $35,000 2.4% 2 36,500 1.8% 3 39,000 3.3% 4 41,000 3.5% Fill in the following table. (Round to the nearest dollar.) EOY Salary (R$ in Year 0) 1 2 3 4
recent college graduate has received the annual salaries shown in the following table over the past four years. During this time, the CPI has performed as indicated. Determine the annual salaries in year-zero dollars (b=0), using the CPI as the indicator of general price inflation. End of Year Salary (A$) CPI 1 $35,000 2.4% 2 36,500 1.8% 3 39,000 3.3% 4 41,000 3.5% Fill in the following table. (Round to the nearest dollar.) EOY Salary (R$ in Year 0) 1 2 3 4
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A recent college graduate has received the annual salaries shown in the following table over the past four years. During this time, the CPI has performed as indicated. Determine the annual salaries in year-zero dollars
(b=0),
using the CPI as the indicator of general price inflation.
End of Year
|
Salary (A$)
|
CPI
|
---|---|---|
1
|
$35,000
|
2.4%
|
2
|
36,500
|
1.8%
|
3
|
39,000
|
3.3%
|
4
|
41,000
|
3.5%
|
Fill in the following table. (Round to the nearest dollar.)
EOY
|
Salary (R$ in Year 0)
|
---|---|
1
|
|
2
|
|
3
|
|
4 |
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