Scenario 6-1
Grant Smith was a doctor. In 1944, he made $12,000. His daughter, Lisa Smith, is also a doctor. Last year she made $275,000. The price index in 1944 was 17.6 and the price index last year was 200.
-Refer to Scenario 6-1. What is Lisa's income in 1944 dollars?

Question

Quizplus · Accepted Answer

To convert Lisa's income to 1944 dollars, use the formula: Lisa's income in 1944 dollars = (Lisa's income in last year's dollars) * (1944 price index / last year's price index). Plugging in the numbers: $275,000 * (17.6 / 200) = $24,200.

Scenario 6-1 Grant Smith Was a Doctor. in 1944, He Made $12,000