The table below reports the annual net salary amounts for an accountant who began employment with an auditing firm in 1995. In addition, the values of...

      

The table below reports the annual net salary amounts for an accountant who began employment with an
auditing firm in 1995. In addition, the values of the Consumer Price Index (CPI) for 1995 through 1999 is
shown.
cpi6121137.png
Required:
Determine whether there is a difference in percentage salary increase between 1995 and 1999 in terms of
stated (current) shillings amounts and in terms of constant (deflated salary, using CPI) shillings.

  

Answers


Mutiso
cpi6121137i.png
There is a difference as shown hereby. There is a difference in percentage increase. In terms of stated
shillings there is an increase of 11.1% while in terms of constant shillings, there is a decrease of 2 %
Although the rest of the years? changes were not required, it has been shown here for clear
understanding
cpi6121137ii.png

Mutiso answered the question on December 6, 2018 at 08:44


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