Iggie Took a University Teaching Job as an Assistant Professor

question 105

Multiple Choice

Iggie took a university teaching job as an assistant professor in 1974 at a salary of $10,000. By 2003, she had been promoted to full professor, with a salary of $50,000. If the price index was 50 in 1974 and 180 in 2003, then what is Iggie's 2003 salary in 1974 dollars?

• A)$13,888.89
• B)$40,000
• C)$65,000
• D)$180,000

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Definitions:

Fiscal Year

A one-year period adopted by businesses and governments for accounting and financial reporting, which may or may not align with the calendar year.

Preferred Stock

A class of stock that offers its holders priority over common stockholders in the distribution of dividends and assets.

Common Stock

Equity ownership in a corporation, with the right to vote on corporate matters and receive dividends.

Dividends Per Share

The total amount of dividends declared for each share of stock issued, showing how much shareholders receive from the net profits of the company.