In 2008,Cameron began his career with HSBC.His starting salary was $32,000.By 2015,his salary had increased to $55,000.If the CPI was 100.0 in 2008 and 117.5 in 2015,Cameron's 2015 real income in 2008 dollars is

Question

Quizplus · Accepted Answer

To calculate Cameron's 2015 real income in 2008 dollars, we need to adjust his 2015 salary for inflation using the CPI. We can use the following formula:

Real income in 2008 dollars = (Nominal income in current dollars / CPI in current year) x 100

Plugging in the values:

Real income in 2008 dollars = ($55,000 / 117.5) x 100
Real income in 2008 dollars = $46,808.51 (rounded to the nearest cent)

Therefore, the best choice is D.

In 2008,Cameron Began His Career with HSBC