In 1975, Richard Petty won the NASCAR race in Richmond, earning $6265. In 2006, Dale Earnhardt, Jr., won the race, earning $239,166. The CPI index was 52.5 in 1975 and 198.7 in 2006 (base year = 1982-1984). Calculate the real earnings (based on base year 1982-1984) of both Petty and Earnhardt.
What will be an ideal response?
Petty: $6265/(52.5/100) = $11,933. Earnhardt: $239,166/(198.7/100) = $120,365. So Earnhardt's real earnings were over ten times those of Petty (thanks to NASCAR's increased popularity).
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