Use the link below to access the inflation calculatorhttpdat

Use the link below to access the inflation calculator.http://data.bls.gov/cgi-bin/cpicalc.pl

(or 25,000.00 in January 1975 has the same buying power as $100,852.69 in November 2007 Calculate

Solution

A. The nominal amount needed in 1975 to maintain purchasing power in 1975 is $100852.69

B. Increase in incomes = 100852.69-25000 = $75852.69

C. 25000 of 1975 = 100852.69 of 2007

or 1 dollar of 2007 = 25000/100852.69

or 96348 dollar of 2007 = 25000/100852.69 * (96348) = $23883.25 of 19975

As $23883.25 is less than $25000 then yes it would  be able to buy roughly the same amount of goods and services in 1975 if i made only $25,000.

D. If $25,000 in 2007 has the same value as $96,348 in 1975 then it would be negative inflation rate.

Use the link below to access the inflation calculator.http://data.bls.gov/cgi-bin/cpicalc.pl (or 25,000.00 in January 1975 has the same buying power as $100,852

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