Question

Smith's income was $50,000 in year 1 and $55,000 in year 2. The CPI was 114 in year 1 and 124 in year 2. What was the approximate percentage change in Smith's real income between the two years?

Answer 1

I'm sorry, I don't have access to the details of the webpage you mentioned. However, to calculate the approximate percentage change in ​Smith's real income between the two years, you can use the following formula:

Percentage Change = ((New Value - Old Value) / Old Value) * 100

In this case, the old value is $50,000 and the new value is $55,000. Plugging in the values into the formula, we get:

Percentage Change = (($55,000 - $50,000) / $50,000) * 100

Simplifying the equation, we have:

Percentage Change = (5,000 / 50,000) * 100 = 10%

Therefore, there is an approximate 10% increase in Smith's real income between the two years.