In 1954, Canadian Prime Minister Louis Stephen St. Laurent was paid a salary of $15,000. Justin Trudeau, the Prime Minister in 2018, was paid $175,600. The price index for 1954 is 14.1 and the price index for 2018 is 133.4. What is, approximately, Prime Minister St. Laurent's salary equivalent in 2018 dollars?

Question

Quizplus · Accepted Answer

To find the equivalent salary of St. Laurent in 2018 dollars, we use the formula:
Equivalent salary in 2018 dollars = (salary in original year) x (price index in new year) / (price index in original year)

Substituting the values given in the question, we get:
Equivalent salary = $15,000 x 133.4 / 14.1
Equivalent salary = $141,915.60

Therefore, the best choice is B.