In 2008, Cameron began his career with SBC.His starting salary was $32,000.By 2010, his salary increased to $35,000.If the CPI was 100.0 in 2008 and 107.5 in 2010, Cameron's 2010 real income is

Question

Quizplus · Accepted Answer

To find Cameron's real income in 2010, we need to adjust his 2008 salary for inflation using the CPI.

To do this, we use the following formula:

Real income = Nominal income x (Base year CPI / Current CPI)

Plugging in the values we have, we get:

Real income = $35,000 x (100.0 / 107.5) = $32,558

Therefore, the best choice is B.

In 2008, Cameron Began His Career with SBC