Question

The graph represents the purchasing power if the inflation is 12 percent. Estimate the purchasing power of a monthly salary of $3000?



$2700

$3000

$2800

$2500

Answer 1

Answer:

• First choice: $2,700

Explanation:

Plase, see the attached  graph with the red and green dotted arrows.

The red arrow shows that, you must read the monthly salary of $3,000 on the horizontal axis and go vertically upward until you find (intercect) the leaned line that represents the inflation.

From the point of intersection you must go horizontally to the left until you find the vertical axis. There you read the purchasing power corresponding for the montly salary of $3,000.

You must realize that the value of each small division is ($3,000 - $2,500)/5 = $500/5 = $100.

Hence, you landed between the marks of $2,600 and $2,700. Thus, your best estimate should be $2,650, which may be approximated to $2,700 which is the first choice.