Andrew is offered a job in Calgary where the CPI is 120 and a job in Toronto where the CPI is 150.Andrew's job offer in Calgary is for $65 000.Which of the following salaries would the Toronto job have to pay so that both jobs have the same purchasing power?

Question

Andrew is offered a job in Calgary where the CPI is 120 and a job in Toronto where the CPI is 150.Andrew's job offer in Calgary is for $65 000.Which of the following salaries would the Toronto job have to pay so that both jobs have the same purchasing power?

Quizplus · Accepted Answer

To have the same purchasing power, the salary in Toronto should be adjusted for the difference in CPI. The formula is: Salary in Toronto = Salary in Calgary * (CPI in Toronto / CPI in Calgary). So, $65,000 * (150/120) = $81,250.

Andrew Is Offered a Job in Calgary Where the CPI