Question

Andrew is offered a job in Little Rock, where the CPI is 80, and a job in New York, where the CPI is 125. Andrew's job offer in Little Rock is for $42,000. How much does the New York job have to pay in order for the two salaries to represent about the same purchasing power?

Answer 1

The job in New York should offer $65,625.

Step-by-step explanation:

Andrew is offered a job in Little Rock, where the CPI is 80, and a job in New York, where the CPI is 125.

Andrew's job offer in Little Rock is $42,000.

To represent the same purchasing power salary in New York should be

=
`(CPI\ in\ New\ York)/(CPI\ in\ Little\ Rock)\ *\ Salary\ in\ Little\ Rock`

=
`(125)/(80)\ *\ \$ 42,000`

= $65,625