Question

A typical high-income household in 1980 earned $131,120. A similar household in 2009 earned $173,613. What was the relative increase in income for these households from 1980 to 2009? Round to the nearest one percent.

a) (32%)

b) (25%)

c) (33%)

d) (24%)

Answer 1

The relative increase in income from 1980 to 2009 for high-income households is approximately 32%, calculated by finding the income difference, dividing by the 1980 income, and converting to a percentage.

Step-by-step explanation:

The question asks to determine the relative increase in income for high-income households from 1980 to 2009. To find the relative increase, first calculate the difference in income between the two years. Then, divide the difference by the income in 1980 and multiply by 100 to get the percentage increase.

The difference in income is 173,613 - 131,120 = $42,493. Next, divide this difference by the 1980 income: $42,493 / $131,120 = 0.324 or 32.4% when expressed as a percentage. Rounding to the nearest percent gives us 32%.

Therefore, the relative increase in income from 1980 to 2009 for high-income households is approximately 32%, which corresponds to option (a).