The CPI increased from 130.0 to 135.0 over a two-year period. If a person earned $35,000 at the beginning of the two-year period, how much would they have to earn at the end of the two-year period to maintain the same purchasing power?

Question

Quizplus · Accepted Answer

The CPI increased by 3.85% over the two-year period (135.0 / 130.0 - 1 = 0.0385). To maintain the same purchasing power, the person would need to earn 3.85% more at the end of the two-year period. $35,000 * 1.0385 = $36,346.

The CPI Increased from 130