In 1931, president herbert hoover was paid a salary of $75000. government statistics show a consumer price index of 15.2 for 1931 and 207 for 2007. president hoover's 1931 salary was equivalent to a 2007 salary of about
given: cpi=15.2 in 1931, salary 75000; cpi=207 in 2007, salary=?
75000x(207/15.2)=1021381.57

$ 1,021,381.578

Explanation:

Given

The consumer price index in the year 1931 = 15.2

Salary of the president in 1931 = $75000

The consumer price index in the year 2007 = 207

Therefore the salary of the president in the year 2007 is given by

                                                       =  75000 x ( 207/15.2 )

                                                       =   $ 1,021,381.578

Thus the salary of the president is $ 1,021,381.578 in 2007.

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