Question

Quinn has job offers in Wrexington and across the country in Charlieville. The Wrexington job would pay a salary of $50,000 per year, and the Charlieville job would pay a salary of $40,000 per year. The CPI in Wrexington is 150, and the CPI in Charlieville is 90. Refer to Scenario 24-4. The Charlieville salary in Wrexington dollars is Select one: a. $60,000.00 b. $26,666.67. c. $66,666.67. d. $24,000.00.

Answer 1

c. $66,666.67.

Explanation:

Provided that

Wrexington job paying a salary for $50,000 per year

Charlieville job paying a salary for $40,000 per year

The CPI in Wrexington is 150

The CPI in Charlieville is 90

So, by considering the above information, the Charlieville salary in Wrexington dollars is

= Charlieville job paying a salary × CPI in Wrexington ÷ CPI in Charlieville

= $40,000 × 150 ÷ 90

= $66,666.67