Babe Ruth's 1931 salary was $80,000. Government statistics show a consumer price index of 15.2 for 1931 and 229.6 for 2012. Ruth's 1931 salary was equivalent to a 2012 salary of about

Question

Quizplus · Accepted Answer

To find the equivalent 2012 salary, we need to adjust for inflation using the CPI. The formula is:
(2012 CPI / 1931 CPI) x 1931 salary = equivalent 2012 salary
Plugging in the values, we get:
(229.6 / 15.2) x $80,000 = $1,208,421.05
Therefore, the best choice is C.

Babe Ruth's 1931 Salary Was $80,000