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 $175 000. The price index in 1944 was 17.6 and the price index last year was 192.
-Refer to the Scenario 6-1.What is Grant's 1944 income in last year's dollars?

Question

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 $175 000. The price index in 1944 was 17.6 and the price index last year was 192.
-Refer to the Scenario 6-1.What is Grant's 1944 income in last year's dollars?

Quizplus · Accepted Answer

To find Grant's 1944 income in last year's dollars, we need to use the formula:
(income in 1944 dollars) x (price index last year) / (price index in 1944)
= $12 000 x 192 / 17.6
= $130 909.09
Therefore, the best choice is D.

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