Posted by **Peppermintmocha** on Friday, January 14, 2011 at 2:28am.

The GDP of Company E was $500 million in 1995. The population was 1 million, so the average income was $500. As a result of economic growth, GDP in 2005 was $1,500 million. The population was already 2 million. What was the average income in 2005.

I'm guessing 1,500 million means 1.5 billion, so I have 1.5 billion divided by 2,000 equals 7,500

2. Joe had an income of 20,000 in 2004. He received a salary increase of 10 percent in 2005. Inflation was 15 percent. How much did Joe make in 2005?

I have 20,000 times 10 equals 2,000 so 20,000 plus 2,000 is 22,000.

Did his real income rise or fall in 2005? Explain your answer.

It fell because he only received a ten percent increase in his salry. The goods he needs to purchase are 5 percent more expensive than the previous year.

## Answer This Question

## Related Questions

- algebra - (1) If the population of a city was 2 million in 1995 and growing at a...
- algebra - A country's population in 1995 was 175 million. In 2000 it was 181 ...
- Algebra 2 - A country's population in 1991 was 15 million. In 2001 it was 16 ...
- Microeconomics - 3. Suppose that a business incurred implicit costs of $500,000 ...
- math - Date US Population Jul 1, 2012 313.85 million Jul 1, 2011 311.59 million...
- Algebra - A countrys population in 1995 was 56 million in 2002 it was 59 ...
- College Mathematics - Guys, could you please help me with this problem? I'm a ...
- Health - How many new STD cases are there each year? A. 30 million B. 15 million...
- Finance - Rock Company acquired land 8 years ago for 2.2 million. Today it is ...
- Geography - 1. In Brazil, the indigenous population was around 3.5 million ...

More Related Questions