8-9. A recent college graduate has received the annual salaries shown in the following table over the past four years. During this time, the CPI has performed as indicated. Determine the annual salaries in year-zero dollars (b=0), using the CPI as the indicator of general price inflation. (8.2) End of Year Salary (A$) CPI 1 $34,000 2.4% 2 36,200 1.9% 3 38,800 3.3% 41,500 3.4%

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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8-9. A recent college graduate has received the annual
salaries shown in the following table over the past
four years. During this time, the CPI has performed
as indicated. Determine the annual salaries in year-zero
dollars (b=0), using the CPI as the indicator of general
price inflation. (8.2)
End of Year Salary (A$)
1
2
3
4
$34,000
36,200
38,800
41,500
CPI
2.4%
1.9%
3.3%
3.4%
Transcribed Image Text:8-9. A recent college graduate has received the annual salaries shown in the following table over the past four years. During this time, the CPI has performed as indicated. Determine the annual salaries in year-zero dollars (b=0), using the CPI as the indicator of general price inflation. (8.2) End of Year Salary (A$) 1 2 3 4 $34,000 36,200 38,800 41,500 CPI 2.4% 1.9% 3.3% 3.4%
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