In 1971, when the consumer price index was 40.48, women earned a median income of $2,408 per year. If the consumer price index in 2012 was 229.6, how much was $2,408 in 2012 dollars?

Question

Quizplus · Accepted Answer

To adjust the 1971 income to 2012 dollars, you use the formula: (2012 CPI / 1971 CPI) * 1971 dollars = 2012 dollars. Plugging in the numbers: (229.6 / 40.48) * $2,408 = approximately $13,658.

In 1971, When the Consumer Price Index Was 40