John expects to get a raise equal to the increase in the consumer price index (CPI). The CPI has gone from 160 to 164. If John's salary last year was $50,000, what salary does he expect to earn this year?
A) $48,750
B) $51,250
C) $52,220
D) $52,250

Question

Quizplus · Accepted Answer

The CPI increased from 160 to 164, which is an increase of 4/160 = 0.025 or 2.5%. Therefore, John expects a 2.5% raise on his $50,000 salary, which is $50,000 * 1.025 = $51,250.

John Expects to Get a Raise Equal to the Increase