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your father tells you he earned $1.50 per hour when he was 16 in 1969; you...

your father tells you he earned $1.50 per hour when he was 16 in 1969; you made $8.00 per hour when you were 16 in 2015. Given that the CPI was 36.7 in 1969 and 237.9 in 2015, which of the following is the 2015 equivalent of your father's hourly ratings when he was 16?

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Answer #1

Ans. Past dollars in terms of recent dollars = Dollar amount × ( Ending-period CPI ÷ Beginning-period CPI )

= $1.50 × ( 237.9 ÷ 36.7 )

= $9.7

So the 2015 equivalent of my father's hourly wage when he was 16 is $9.7.

Best of Luck !! !!

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