Question

In 2003, Julia Roberts was paid a then-record shattering $25 million for her role in the film Mona Lisa Smile. The CPI that year was 184. In 2013, Sandra Bullock was paid $70 million for the film Gravity. The CPI in 2013 was 233. Round answers to two decimal places. a. Convert Julia Roberts' salary into 2013 dollars. million b. Convert Sandra Bullock's salary into 2003 dollars. million c. Which actress had higher real earnings? Julia Roberts Sandra Bullock

Answer 1

Julia Roberts' 2003 salary into 2013 dollars, we calculate $31.79 million. To convert Sandra Bullock's 2013 salary into 2003 dollars, we calculate $55.91 million. Sandra Bullock had higher real earnings in 2013 dollars.

Step-by-step explanation:

To convert Julia Roberts' salary into 2013 dollars, we need to adjust the 2003 salary for inflation. We can use the Consumer Price Index (CPI) to do this. The formula to convert is: 2013 salary = (2003 salary) * (2013 CPI / 2003 CPI).

Using the given values, we can calculate: 2013 salary = $25 million * (233 / 184) = $31.79 million.

To convert Sandra Bullock's salary into 2003 dollars, we use the same formula, but rearranged: 2003 salary = (2013 salary) * (2003 CPI / 2013 CPI).

Using the given values, we can calculate: 2003 salary = $70 million * (184 / 233) = $55.91 million.

Comparing the two salaries, we can see that Sandra Bullock had higher real earnings in 2013 dollars.

Answer 2

To convert Julia Roberts' salary into 2013 dollars, divide her salary by the CPI in 2003 and multiply it by the CPI in 2013. The adjusted salary is $31.82 million. To convert Sandra Bullock's salary into 2003 dollars, divide her salary by the CPI in 2013 and multiply it by the CPI in 2003. The adjusted salary is $55.01 million. Sandra Bullock had higher real earnings than Julia Roberts.

Step-by-step explanation:

To convert Julia Roberts' salary into 2013 dollars, we need to adjust for inflation. We can use the Consumer Price Index (CPI) to do this. The CPI in 2003 was 184, and in 2013 it was 233. To convert the salary, we can use the formula:

Adjusted Salary = (Salary in 2003 / CPI in 2003) * CPI in 2013

So, for Julia Roberts' salary:

Adjusted Salary = ($25 million / 184) * 233 = $31.82 million

To convert Sandra Bullock's salary into 2003 dollars, we can use the same formula but reverse the CPI values:

Adjusted Salary = (Salary in 2013 / CPI in 2013) * CPI in 2003

So, for Sandra Bullock's salary:

Adjusted Salary = ($70 million / 233) * 184 = $55.01 million

Comparing the adjusted salaries, we can see that Sandra Bullock had higher real earnings with $55.01 million compared to Julia Roberts' $31.82 million.