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Help me with this finance math question?

Suppose the Consumer Price Index in 2009 is​ 114.4, with 2002 as the base year.

​(a) What is the purchasing power of the dollar in 2009 compared to​ 2002?

​(b) What is the real​ income, relative to​ 2002, of a wage earner whose income amounted to​ $62,900 in​ 2009?

​(a) The purchasing power of the dollar in 2009 compared to 2002 is ​$

nothing.

​(Round to six decimal places as​ needed.)

1 Answer

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  • Bryce
    Lv 7
    2 months ago

    a. 100/114.4= 0.874126

    b. 62,900*0.874126= $54,982.52

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