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The salary of the president of the United States in 2000 was $400,000. In 1940, the president's salary was $75,000. If the Consumer Price Index was 8.1 in 1940 and 100 in 2000, the 1940 presidential salary measured in terms of the purchasing power of the dollar in 2000 would be: a. less than $75,000. b. less than $400,000. c. approximately $668,850. d. approximately $926,000.

Answer :

AYOKENNY2001GO

Answer:

D. Approximately $926,000

Explanation:

To compute the purchasing power of president of the united state's salary in 1940, we will divide 100 by 8.1

= 100/8.1

= 12.3457

The next step is to multiply the above result by $75,000

= 12.3457 × $75,000

= $925,925.93

The above means that in real dollars adjusted to inflation, the president in 1940 earned more than twice the president in 2000

Therefore, 1940 presidential salary measured in yes of purchasing power of the dollar in 2000 would be approximately $926,000

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