Question

Atlanta, GA has a CPI of 168. Seattle, WA has a CPI of 204. How does the purchasing power of an Atlanta resident earning a $32,800 salary compare to the purchasing power of a Seattle resident earning a $46,400 salary?
a.
The Atlanta resident has $34.46/CPI more than the Seattle resident.
b.
The Atlanta resident has $83.20/CPI more than the Seattle resident.
c.
The Seattle resident has $48.74/CPI more than the Atlanta resident.
d.
The Seattle resident has $32.21/CPI more than the Atlanta resident.


Please select the best answer from the choices provided

A
B
C
D

Answer 1

Compute income per CPI point:

- Atlanta: 32,800 / 168 = 195.238095...
- Seattle: 46,400 / 204 = 227.45098...

Difference: 227.45098 − 195.238095 ≈ 32.21

So the Seattle resident has $32.21/CPI more than the Atlanta resident — answer D.