Scott worked in a large foreign country. He retired in 2008 and his pension income is fixed at $1,500 per month. The table above gives the CPI in this country. What is the real monthly value of his pension in the years between 2008 and 2011?
What will be an ideal response?
To calculate the real value of the pension, divide the $1,500 pension by the CPI and then multiply by 100. This calculation gives the real values as: 2008, $1,500.00; 2009, $1,463.41; 2010, $1,415.09; 2011: $1,351.52.
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