Scenario 24-3
Grant Gant was a doctor in 1944 and earned $12,000 that year.His daughter,Gretta Gant,is a doctor today and she earned $210,000 in 2005.The price index was 17.6 in 1944 and 184 in 2005.
-Refer to Scenario 24-3.Grant Gant's 1944 income in 2005 dollars is

Question

Quizplus · Accepted Answer

To find the 1944 income in 2005 dollars, we use the formula: (1944 income) x (2005 price index) / (1944 price index)

Plugging in the numbers, we get:
(12,000) x (184) / (17.6) = $125,454.55

Therefore, the answer is choice C, $125,454.55.

Scenario 24-3 Grant Gant Was a Doctor in 1944 and Earned $12,000