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Assume you earned $30,000 in 2012, and the CPI in 2013 was 238. How much of a raise did you need, in dollars, to keep up with the change in the inflation rate of 3.48%

Respuesta :

jepessoa

Answer:

$1,044

Explanation:

If the inflation rate is 3.48% and you want your raise to keep up with it, then you should get a raise equal to 3.48% = $30,000 x 3.48% = $1,044

the inflation rate decreases the purchasing power of money, so if your salary increases in the same proportion as the inflation rate, you are just keeping up with increasing prices, your real salary doesn't increase.

Tundexi

We will need a sum of $1,044 to keep up with the change in the inflation rate of 3.48%.

What is an inflation rate?

An inflation rate is whatr decreases the purchasing power of money

Hence, if salary increases in the same proportion as the inflation rate, you are just keeping up with increasing prices, your real salary doesn't increase.

If the inflation rate is 3.48%, then, the raise to keep up with it should equal

= $30,000 x 3.48%

= $1,044

Read more about inflation rate

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