Question

A typical high-income household in 1980 earned $146,579. A similar household in 2009 earned $196,448. What was the relative increase in income for these households from 1980 to 2009? Round to the nearest one percent.

A) 25%
B) 34%
C) 42%
D) 58%
E) 34%

Answer 1

The relative increase in income for high-income households from 1980 to 2009 is approximately 34% after performing the percentage increase calculation and rounding to the nearest percent.

Step-by-step explanation:

To calculate the relative increase in income for high-income households from 1980 to 2009, we use the formula for percentage increase: ((New Income - Original Income) / Original Income) * 100. For the 1980 income of $146,579 and the 2009 income of $196,448, the calculation is (($196,448 - $146,579) / $146,579) * 100.

The increase is $196,448 - $146,579 = $49,869. The relative increase is ($49,869 / $146,579) * 100 ≈ 34.01%.

After rounding to the nearest one percent,The relative increase in income from 1980 to 2009 for high-income households is approximately 34%.