Question

When Joe started his job at the laundromat five years ago, his wage was $6.00 an hour. Today, his wage is $8.50 an hour. If Joe started his job in the base year, and his real wage is the same as when he started, what is the Consumer Price Index (CPI) today

Answer 1

142

Step-by-step explanation:

The computation of the Consumer Price Index (CPI) today is shown below:-

Real Salary today / Real Salary 5 years ago = CPI today ÷ CPI 5 years ago

CPI today ÷ 100 = 8.50 ÷ 6

= 142

Therefore for computing the Consumer Price Index (CPI) today we simply applied the above formula and the same is to be considered