Question

multiple choice 1 point suppose the price index was 105 in 2017, 126 in 2018, and the inflation rate was lower between 2018 and 2019 than it was between 2017 and 2018. this means that_. the price index in 2019 was lower than 126.0. the price index in 2019 was lower than 147.0. the price index in 2019 was lower than 151.2. the inflation rate between 2018 and 2019 was lower than 1.2 percent. multiple choice 1 point michael jordans rookie salary in 1986 was $550,000. the cpi in 1986 was 103.9, while the cpi in 2010 was 218.1. what is michael jordans rookie salary in 2010 dollars? $550,000 $1,154,523.58 $262,012.84 $722,420.88

Explanation:

Step1: Recall the formula for inflation - adjusted value

The formula to adjust a value for inflation is $V_{adjusted}=V_{original}\times\frac{CPI_{new}}{CPI_{original}}$, where $V_{adjusted}$ is the value in the new - time period, $V_{original}$ is the value in the original time period, $CPI_{new}$ is the Consumer Price Index in the new time period, and $CPI_{original}$ is the Consumer Price Index in the original time period.

Step2: Identify the values

We know that $V_{original}=\$550000$ (Michael Jordan's rookie salary in 1986), $CPI_{original} = 103.9$ (CPI in 1986), and $CPI_{new}=218.1$ (CPI in 2010).

Step3: Calculate the adjusted value

$V_{adjusted}=550000\times\frac{218.1}{103.9}$
$V_{adjusted}=550000\times2.10$ (rounded $\frac{218.1}{103.9}\approx2.10$)
$V_{adjusted}= 1155000$

Answer:

$1,154,523.58$ (Note: There may be a slight difference in rounding in the provided options compared to our step - by - step calculation. The closest value to our calculated result among the options is likely due to different levels of rounding in the problem - solving process)