Answer:
$ 8477.42 ( approx )
Step-by-step explanation:
Since, the CPI formula is,
[tex]\text{CPI}=\frac{\text{Cost in current year}}{\text{Cost in base year}}\times 100[/tex]
Given,
In 1964, CPI is 31 and cost is $12,000,
By substituting values,
[tex]31=\frac{12000}{\text{Cost in base year}}\times 100[/tex]
[tex]\implies \text{Cost in base year}=\frac{1200000}{31}[/tex]
In 2016, CPI is 219,
Since, the cost in base year is constant,
[tex]\implies 219=\frac{\text{Cost in current year}}{\frac{1200000}{31}}[/tex]
[tex]\implies \text{Cost in current year}=219\times \frac{1200000}{31}=8477.41935484\approx 8477.42[/tex]
Hence, the salary in 2016 would be $ 8,477.42. ( approx )
