In year 1 the CPI is 140,and in year 2 the CPI is 160.From year 1 to year 2,Chiang's salary rises from $42,000 to $49,000,and Marta's salary rises from $55,000 to $60,000.Who is "more than keeping up with inflation"?
A)Marta
B)Chiang
C)both Marta and Chiang
D)neither Marta nor Chiang

Question

Quizplus · Accepted Answer

Chiang's salary increased by approximately 16.67% ($42,000 to $49,000), while the CPI increased by about 14.29% (140 to 160). Therefore, Chiang's salary increase is more than the inflation rate. Marta's salary increased by about 9.09% ($55,000 to $60,000), which is less than the inflation rate.

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