Question

What is the formula to figure this out?
An engineer in 1950

was earning $6,700 a year. In 2015 she earned $87,000 a year. However, on average, prices in 2015 were higher than in 1950. What was her real income in 2015 in terms of constant 1950 dollars? Use the data in Table 5.8. 

CPI % Change since 1950

1950 25.0

1960 29.8 +19.2

1970 39.8 +59.2

1980 86.3 +245.2

1990 133.8 +435.2

2000 174.0 +596.0

2010 219.2 +776.8

2015 236.5 +846.0

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"