0 like 0 dislike
13 views
Assume that in the year 2014 the Consumer Price index (CPI) was 102.7 in February and 110.5 in November. An employee’s wage was R20 000 in February and R22 145 in November. In relation to the value of the rand in November, his wage has:
in QMI1500 by Diamond (39.8k points) | 13 views

1 Answer

0 like 0 dislike
Consider the following table:

Month                    Wage (in rand)            CPI                                Deflated wage

Feb 2014                20 000                       102.7          (20000x100)/102.7 = 19474.20

Nov 2014                22 145                       110.5          (22145x100)/110.5 = 20040.72

Increase = 20040.72 - 19474.20 = R566.52

Therefore in relation to the value of the rand in November, his wage has increased by R566.52.
by Gold Status (10.9k points)

Related questions

0 like 0 dislike
1 answer
0 like 0 dislike
0 answers
asked Jan 20 in Economics by Tedsf Diamond (39.8k points) | 11 views
0 like 0 dislike
1 answer
0 like 0 dislike
0 answers
Welcome to MathsGee Skills Question and Answer Bank, a platform, where you can ask study questions and receive answers from other members of the community. Help is always 100% FREE!
MathsGee Q&A is the knowledge-sharing community where millions of students and experts put their heads together to crack their toughest homework questions.

Enter your email address:

Categories

[consumerlti id="python_coding"]