Homework SourseGeronimo earns 1250 per hour in 2016 Convert this hourly wag
| Geronimo earns $12.50 per hour in 2016. Convert this hourly wage to 1967 dollars. | ||
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| Geronimo earns $12.50 per hour in 2016. Convert this hourly wage to 1967 dollars. | ||
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Solution
Assuming this is for US, taking n average inflation rate of 4.11 dollars per year, Prices in 2016 are 618.6% higher than prices in 1967.
In other words, $100 in 1967 is equivalent in purchasing power to $718.58 in 2016, a difference of $618.58 over 49 years.
The inflation rate in 2016 was 1.26%.
Tus the hourly wage or 12.50 is 2016 is 1.739 ~ 1.74 dollars an hour.
