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 $
(Round to six decimal places as needed.)
- BryceLv 72 months ago
a. 100/114.4= 0.874126
b. 62,900*0.874126= $54,982.52