To find the equivalent take-home pay in 2000 based on the CPI from 1965, you can use the formula for inflation adjustment:
\[ \text{Equivalent Pay} = \text{Nominal Pay} \times \frac{\text{CPI in 2000}}{\text{CPI in 1965}} \]
Given that the CPI for 1965 is 11.0 and the CPI for 2000 (using a base year of 2000) is 100.0, and the household's annual take-home pay in 1965 is R14363, you can substitute these values into the formula:
\[ \text{Equivalent Pay} = 14363 \times \frac{100}{11.0} \]
Now calculate it step by step.
- First, calculate the fraction:
\[ \frac{100}{11.0} \approx 9.0909 \]
- Now, multiply this by the nominal pay:
\[ \text{Equivalent Pay} \approx 14363 \times 9.0909 \approx 130,000.00 \]
So, the equivalent take-home pay in 2000 would be approximately R130,000.00.