Suppose your grandfather earned a salary of $12,000 in 1964.If the CPI is 31 in 1964 and 219 in 2018,then the value of your grandfather's salary in 2018 dollars is approximately
A)$84,775.
B)$63,830.
C)$37,200.
D)$26,280.

Question

Quizplus · Accepted Answer

To adjust the salary from 1964 to its equivalent in 2018 dollars, you use the formula: (Old Salary * New CPI) / Old CPI. Plugging in the numbers: ($12,000 * 219) / 31 = $84,774.19, which rounds to approximately $84,775.

Suppose Your Grandfather Earned a Salary of $12,000 in 1964