Perry made $34,885 this year. If the inflation rate was 6.5 percent, how much was his salary actually worth? (purchasing power)
take .935(34885)
What is the current salary, if the purchasing power is $2000?
Answering michaels question it is not $2100 so cross that out as an option
Coming back to michaels question since I just finished the quiz if you take a look at the graph I know it may be hard to see but it is $2300
32,617.48
To calculate the salary's actual worth, we need to adjust it for inflation. Here's how you can do it:
1. Convert the inflation rate from a percentage to a decimal. In this case, 6.5 percent would be 0.065.
2. Calculate the adjustment factor by adding 1 to the inflation rate decimal. In this case, the adjustment factor would be 1 + 0.065 = 1.065.
3. Divide the original salary by the adjustment factor to find the adjusted salary. So, Perry's adjusted salary would be $34,885 / 1.065 = $32,744.39 (rounded to two decimal places).
Therefore, if the inflation rate was 6.5 percent, Perry's salary would be worth approximately $32,744.39 in terms of purchasing power.