You earn $82,000 per year at your job. The index value for the medical care component...

You earn $82,000 per year at your job. The index value for the medical care component of the CPI is currently 445 but is expected to increase next year to 488. How much money will you need to earn next year to be able to purchase the same amount of medical care? Provide your answer in dollars rounded to two decimal places. Do not include any symbols, such as "$," "=," "%," or "," in your answer.

Solutions

Expert Solution

Solution:-

Given in question

Present income is 82000 per Year

Medical component of CPI for current year is 445

The medical component of CPI is expected to increase 488 next Year

Money to be required for next year is (82000/445) * 488

184.27 * 488

89923.56

Hence

Money to be required for next year for purchasing same amount of medical care is 89923.56

Rahul Sunny answered 2 years ago

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