Question

QRINC offered new employees a starting salary of $34,862 in 2013. What would a comparable starting salary have been in 2003?

Answer 1

Complete Question

Table of Annual CPI values

2003-184.00

2004-188.90

2005-195.3

2006-201.6

2007-207.342

2008-215.303

2009-214.537

2010-218.056

2011-224.939

2012-229.594

2013-232.957

2014-236.736

QRINC offered new employees a starting salary of $34,862 in 2013. What would a comparable starting salary have been in 2003?

Answer:

`C=27535.5881128`

Explanation:

From the question we are told that

CPI for 2003(index)=2003-184.00

CPI for 2013(index)=2013-232.957

Starting salary in 2013 at $34,862

Generally comparable starting salary C is given as

`C=(starting salary)/(CPI for 2013(index) *CPI for 2003(index)`

`C=(34,862)/(232.957) *184`

Therefore C the comparable starting salary is givrn to be

`C=27535.5881128`

`C=27536 appro`