In year 1 the CPI is 140,and in year 2 the CPI is 154.From year 1 to year 2,Marcy's salary rises from $43,000 to $48,000,and Daphne's salary rises from $65,000 to $70,000.Who is "more than keeping up with inflation"?
A) Marcy
B) Daphne
C) both Marcy and Daphne
D) neither Marcy nor Daphne

Question

Quizplus · Accepted Answer

Marcy's salary increase percentage is higher than the inflation rate, while Daphne's is not. Inflation rate from year 1 to year 2 is $\frac{154 - 140}{140} \times 100\% = 10\%$. Marcy's salary increase is $\frac{48,000 - 43,000}{43,000} \times 100\% \approx 11.63\%$, and Daphne's salary increase is $\frac{70,000 - 65,000}{65,000} \times 100\% \approx 7.69\%$. Only Marcy's salary increase exceeds the inflation rate.

In Year 1 the CPI Is 140,and in Year 2