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An engineer in 1950 was earning $6,200 a year. In 2020, she earned $82,000 a year. However, on average, prices in 2020 were higher than
An engineer in 1950 was earning $6,200 a year. In 2020, she earned $82,000 a year. However, on average, prices in 2020 were higher than in 1950. What was her real income in 2020 in terms of constant 1950 dollars? Use the data in Table 5.8.
\begin{tabular}{|c|c|c|} \hline & CPI & PercentChangesince1950 \\ \hline 1950 & 25.0 & \\ \hline 1960 & 29.8 & +19.2% \\ \hline 1970 & 39.8 & +59.2 \\ \hline 1980 & 86.3 & +245.2 \\ \hline 1990 & 133.8 & +435.2 \\ \hline 2000 & 174.0 & +596.0 \\ \hline 2010 & 219.2 & +776.8 \\ \hline 2020 & 262.0 & +948.1 \\ \hline \end{tabular}Step by Step Solution
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