Answer:
d. $36,000
Explanation:
In this question, we use the proportionate method to find out the salary in 2003 which is shown below:
= Salary in 1974 × (Price index in 2003 ÷ price index in 1974)
= $10,000 × (180 ÷ 50)
= $10,000 × 3.6
= $36,000
We considered the 1974 salary, the price index is 2003 and the price index in 1974 to find out the accurate salary of 2003
