An engineer in 1950 was earning $6,000 a year. Today, in 2011, she earns $60,000 a year.

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An engineer in 1950 was earning $6,000 a year. Today, in 2011, she earns $60,000 a year. However, on average, goods today cost 8.2 times what they did in 1950.

a. What is her real income today in terms of constant 1950 dollars?

b. Calculate her salary's annual inflation rate and the cost of goods annual inflation rate.

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Fundamentals Of Corporate Finance

ISBN: 9781259087585

6th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan, Gordon Roberts

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Question Posted: Jul 12, 2019 10:42 AM

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An engineer in 1950 was earning $6,000 a year. Today, in 2011, she earns $60,000 a year.

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a 6000082 731707 Her real income increased from 6000 to 73170...View the full answer

Fundamentals Of Corporate Finance

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