Ingrid took a university teaching job as an assistant professor in 1974 at a salary of $10,000.By 2003,she had been promoted to full professor,with a salary of $50,000.If the price index in 1974 was 50 and the price index in 2003 was 180,what is Ingrid's 2003 salary in 1974 dollars?

Question

Quizplus · Accepted Answer

To convert Ingrid's 2003 salary to 1974 dollars, use the formula: (2003 salary) * (1974 price index / 2003 price index). This gives $50,000 * (50 / 180) = $13,889.

Ingrid Took a University Teaching Job as an Assistant Professor