Question

The yearly income for an individual with an assocaite degree in 2001 was $53,166 and 2013 was $59, 970. What is the ratio of the income in 2003 in simplest form?

Answer 1

The ratio of the income in 2003 would be $54,300.

Explanation:

Given that the yearly income for an individual with an associate degree in 2001 was $53,166 and 2013 was $59,970, we can determine that in 12 years there was a wage increase of $ 6,804 (59,970 - 53,166). Thus, on average, each year there was a salary increase of $ 567 (6,804 / 12). Therefore, given that in 2003 two years had passed since the starting value of $ 53,166, following this reasoning and without inflationary or recessionary changes, this person's salary should have been $ 54,300 (53,166 + 567 x 2).