Question

Henri earned a salary of $50,000 in 2001 and $70,000 in 2006. The consumer price index was 177 in 2001 and 265.5 in 2006. Henri's 2001 salary in 2006 dollars is:______

a. $35,000.00.
b. $46,666.67.
c. $105,000.00.
d. $61,950.00

Answer 1

$46,666.67

Step-by-step explanation:

Henri earned a salary of $50,000 in 2001

He earned $70,000 in 2006

The consumer price index in 2001 was 177 and in 2006 was 265.5

Therefore his salary in 2001 can be calculated as follows

= 70,000/265.5 × 177

= 263.65 × 177

= 46,666.67