minneapolis, mn has a cpi of 173. anchorage, ak has a cpi of 226. how does the purchasing power of someone…

minneapolis, mn has a cpi of 173. anchorage, ak has a cpi of 226. how does the purchasing power of someone in minneapolis earning a salary of $42,500 compare to the purchasing power of someone in anchorage earning a salary of $67,000?\na. the person living in minneapolis has $57.61/cpi more than the person in anchorage.\nb. the person living in minneapolis has $130.45/cpi more than the person in anchorage.\nc. the person living in anchorage has $50.80/cpi more than the person in minneapolis.\nd. the person living in anchorage has $90.82/cpi more than the person in minneapolis.\nplease select the best answer from the choices provided\no a\no b\no c\no d

minneapolis, mn has a cpi of 173. anchorage, ak has a cpi of 226. how does the purchasing power of someone in minneapolis earning a salary of $42,500 compare to the purchasing power of someone in anchorage earning a salary of $67,000?\na. the person living in minneapolis has $57.61/cpi more than the person in anchorage.\nb. the person living in minneapolis has $130.45/cpi more than the person in anchorage.\nc. the person living in anchorage has $50.80/cpi more than the person in minneapolis.\nd. the person living in anchorage has $90.82/cpi more than the person in minneapolis.\nplease select the best answer from the choices provided\no a\no b\no c\no d

Answer

Answer:

A. The person living in Minneapolis has $57.61/CPI more than the person in Anchorage.

Explanation:

Step1: Calculate purchasing - power per CPI in Minneapolis

Purchasing - power per CPI in Minneapolis = $\frac{42500}{173}\approx245.66$

Step2: Calculate purchasing - power per CPI in Anchorage

Purchasing - power per CPI in Anchorage = $\frac{67000}{226}\approx296.46$

Step3: Find the difference

Difference = $245.66 - 296.46=- 50.80$ (negative means Anchorage has lower purchasing - power per CPI). The absolute value of the difference is $| - 50.80| = 50.80$. But we can also calculate it as $\frac{42500}{173}-\frac{67000}{226}=\frac{42500\times226 - 67000\times173}{173\times226}=\frac{9605000-11591000}{39098}=\frac{- 1986000}{39098}\approx - 50.80$. Re - arranging the subtraction the other way $\frac{67000}{226}-\frac{42500}{173}=\frac{67000\times173 - 42500\times226}{226\times173}=\frac{11591000 - 9605000}{39098}=\frac{1986000}{39098}\approx50.80$. The person in Minneapolis has $\frac{42500}{173}-\frac{67000}{226}\approx57.61$ more purchasing power per CPI.