Annual inflation rate-cost of goods annual inflation rate

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Reference no: EM131958042

An engineer in 1960 was earning $6,000 a year. Today, in 2018, she earns $60,000 a year. However, on average, goods today cost 8.2 times what they did in 1960.

What is her real income today in terms of constant 1960 dollars?

Calculate her salary’s annual inflation rate and the cost of goods annual inflation rate.

Reference no: EM131958042

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