Sharisse brags to her mother that her starting salary as a management trainee is $36,000, much higher than her mother's starting salary of $21,000 as a management trainee several years ago. If the CPI the year Sharisse begins work is 181.2 and the CPI the year her mother started work was 109.1, Sharisse is

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To compare the salaries in real terms, we adjust for inflation using the CPI. Sharisse's mother's salary adjusted to Sharisse's starting year CPI is $21,000 * (181.2 / 109.1) = $34,860. Since $36,000 is more than $34,860, Sharisse's real salary is higher.

Sharisse Brags to Her Mother That Her Starting Salary as a Management