Question
upstudy study bank question image url

Minneapolis, MN has a CPI of 173 . Anchorage, AK has a CPI of 226 . How does the purchasing power of someone in Minneapolis earning a salary of \( \$ 42,500 \) compare to the purchasing power of someone in Anchorage earning a salary of \( \$ 67,000 \) ? a. The person living in Minneapolis has \( \$ 57.61 / \mathrm{CPI} \) more than the person in Anchorage. b. The person living in Minneapolis has \( \$ 130.45 / \mathrm{CPI} \) more than the person in Anchorage. c. The person living in Anchorage has \( \$ 50.80 / \mathrm{CPI} \) more than the person in Minneapolis. d. The person living in Anchorage has \( \$ 90.82 / \mathrm{CPI} \) more than the person in Minneapolis.

Ask by Crawford Bartlett. in the United States
Mar 06,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

The person in Anchorage has \$50.80 more purchasing power per CPI unit than the person in Minneapolis.

Solution

Sign in to Unlock Answers for Free!

A Learning Platform Trusted by Millions of Real Students and Teachers.

star-icon Unlock

Answered by UpStudy AI and reviewed by a Professional Tutor

The Deep Dive

To compare the purchasing power of the two individuals, we first need to adjust their salaries based on their respective CPIs. In Minneapolis, the purchasing power can be calculated as: \[ \text{Purchasing Power in Minneapolis} = \frac{42,500}{173} \approx 245.13 \] In Anchorage, the purchasing power can be calculated as: \[ \text{Purchasing Power in Anchorage} = \frac{67,000}{226} \approx 296.91 \] Now, subtract the two values to find the difference in purchasing power: \[ 296.91 - 245.13 \approx 51.78 \] Thus, the person living in Anchorage has more purchasing power than the person in Minneapolis. The best answer choice that closely resembles this calculation is: c. The person living in Anchorage has \( \$ 50.80 / \mathrm{CPI} \) more than the person in Minneapolis. Just remember, these kinds of calculations help you understand the real value of salary when comparing different locations! Adjustments for the cost of living can be crucial if you’re thinking about a move or job offer! Also, keep in mind that CPI reflects the cost of living and inflation, which can change over time. Always check for the latest data when making important financial decisions!

Related Questions

2 QUESTION 1 : CONCEPTS,JOURNALS AND POSTING (78 marks; 70 Minutos) 1.1. CONCEPTS REQUIRED: Indicate whether the following statements are TRUE or FALSE. Write only 'true' or 'false' next to the question number (1.1.1-1.1.5). 1.1.1 Trading stock, bank and debtors are examples of non-current assets. (1) 1.1.2 A bank overdraft is a facility that allows the business to use more money than they have in their current banking account. (1) 1.1.3 Non-current liabilities are payable within a period of one year. 1.1.4 A creditor is a person or business that is owed money for goods or services they supplied on credit. 1.1.5 Equipment such as a cash register and printers are used to generate income for the business. 1.2 CASH JOURNALS JADE CREATIONS The following information was taken from the books of Jade Creations for March 2021. Jade Creations uses a mark-up of \( 60 \% \) for all merchandise sold. REQUIRED: 1.2.1 Complete the following Journals in the financial records of Jade Creations for March 2021: - Cash Receipts Journal - Cash Payments Journal 1.2.2 Post to the Bank Account in the General Ledger. Balance the account at the end of March 2021. Note: The opening balance is recorded in the answer book. RANSACTIONS FOR MARCH 2021 Paid Thato Suppliers for trading stock, R12 800 and stationery, R350 (EFT 190). Cash sales for the week amounted to R6 520 (CRR 01). Received an EFT 05 from R Rose for the rent for March 2021, R5 300. Invested R20 000 in a fixed deposit at UK Bank at an interest of \( 9 \% \) per annum, (EFT 191). Transferred weekly wages to the account of Sheila, R2 500, and EFT 192. Grade 10 Controlled test-Question paper 07 April 2021

Latest Economics Questions

Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy