Solve the Problem Suppose an Actuary's Salary Was $46,000 in 1980

question 27

Multiple Choice

Solve the problem.
-A part of the Consumer Price Index (CPI) is given below: $$\begin{array} { c | c | c | c | c | c } \text { Year } & 1975 & 1980 & 1985 & 1990 & 1995 \\\hline \text { CPI } & 53.8 & 82.4 & 107.6 & 130.7 & 152.4\end{array}$$ Suppose an actuary's salary was $46,000 in 1980. What would the salary have to be in 1990 to keep up with
Inflation (round to the nearest $1000) ?

• A)$78,000
• B)$124,000
• C)$29,000
• D)$73,000

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Definitions:

Consumption

The use of goods and services by households or individuals, viewed as an economic activity and a component of economic systems.

Michel Foucault

A French philosopher and social theorist known for his influential work on power dynamics, social institutions, and the relationship between knowledge and control.

Sciences of Sex

This term refers to interdisciplinary research areas that study sexual behavior, biological differences between sexes, and the impact of sex on various aspects of life, including health, society, and psychology.

Nineteenth Century

A century marked by industrialization, political revolutions, and the expansion of the British Empire, spanning from 1801 to 1900.