In 2000, an Executive Earned $100,000

question 102

Short Answer

In 2000, an executive earned $100,000. In 2010, the executive earned $125,000. The CPI in 2000 was 172.2; the CPI in 2009 was 214.537. Using the CPI base, 1982-1984 = 100, what was the increase in real income from 2000 to 2009?

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Definitions:

Annual Nominal Rate

The rate of interest charged on a loan or realized on an investment without adjusting for compounding or inflation over a year.

Semi-annual Period

A timeframe that spans half a year, often used in the context of finance for payments or interest calculations.

Annual Interest

The amount of money that is earned or paid on an investment or loan over a one-year period, expressed as a percentage of the principal.

Withdraw Amount

The act of removing funds from an account, investment, or savings.