If the CPI is 220 and nominal income is $37,000,approximately what does real income equal?
A) $81,400
B) $16,818
C) $76,500
D) $44,118

Question

Quizplus · Accepted Answer

To calculate real income we need to divide nominal income by the CPI and then multiply by 100. 
Real Income = (Nominal Income/CPI) x 100 
Real Income = (37,000/220) x 100 = 16,818. Therefore, the real income is approximately $16,818, which is Option B.

If the CPI Is 220 and Nominal Income Is $37,000,approximately