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In 1990 an individual earned $20,111 and the CPI had a value of 180. In 2018...

In 1990 an individual earned $20,111 and the CPI had a value of 180. In 2018 the same individual earned $37,241 and the CPI in 2018 had a value of 224. Calculate the percentage change in the individual's real (inflation adjusted) income. Round your answers to two decimal places.

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Answer #1

Calculate the percentage change in the individual's real (inflation adjusted) income

=((37241/224)/(20111/180))-1

=48.80%

percentage change in the individual's real (inflation adjusted) income per year basis

=(1+48.80%)^(1/28)-1

=1.43%

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