Question

In 1931, President Herbert Hoover was paid a salary of $75000. Government statistics show a consumer price index of 15.2 for 1931 and 207 for 2007. President Hoover's 1931 salary was equivalent to a 2007 salary of about

Given: CPI=15.2 in 1931, salary 75000; CPI=207 in 2007, salary=?
75000x(207/15.2)=1021381.57

Answer 1

$ 1,021,381.578

Step-by-step explanation:

Given

The consumer price index in the year 1931 = 15.2

Salary of the president in 1931 = $75000

The consumer price index in the year 2007 = 207

Therefore the salary of the president in the year 2007 is given by

= 75000 x ( 207/15.2 )

= $ 1,021,381.578

Thus the salary of the president is $ 1,021,381.578 in 2007.