Question

You earn $93,000 per year at your job. The index value for the medical care component of the CPI is currently 440 but is expected to increase next year to 481. How much money will you need to earn next year to be able to purchase the same amount of medical care? Provide your answer in dollars rounded to two decimal places. Do not include any symbols, such as "$," "=," "%," or "," in your answer.

Answer 1

Answer:

$101,665.91

Explanation:

Data provided in the question:

Current earnings = $93,000

Current CPI = 440

Expected future CPI = 481

Now,

The money needed to earn next year to be able to purchase the same amount of medical care will be

= Current earnings × [ Expected future CPI ÷ Current CPI ]

= $93,000 × [ 481 ÷ 440 ]

= $101,665.91