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What is the purchasing power of the dollar

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Reference no: EM132409395

The table below gives information on the CPI and the monthly take-home pay of Bill Jones, an employee at the Ford Canada.

 

 

 

 

 

(a) What is the purchasing power of the dollar for 2007 based on the period 2002? (Round the final answer to 5 decimal places.)

 

(b) Determine Mr. Jones' "real" monthly income for 2007. (Round the final answer to 2 decimal places.) .

 

(c) What is the purchasing power of the dollar for 2010 based on the period 2002? (Round the final answer to 5 decimal places.)

 

(d) Determine Mr. Jone's "real" monthly income for 2010. (Round the final answer to 2 decimal places.)

 

 

 

 

 

Year (2002 = 100) Consumer Price Index (CPI) Mr. Martins Monthly Take-Home Pay ($)

 

2002 100.0 2300

 

2007 111.5 2700

 

2010 116.5 2900

 

2013 122.8 3100

 

Reference no: EM132409395

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