Given that Arlo
is offered a job in des moines, where the cpi is 80, and a job in new
york, where the cpi is 125. arlo's job offer in des moines is for
$42,000.
Let the amount the new york job will pay be x, then
[tex] \frac{x}{125} = \frac{42,000}{80} =525 \\ \\ \Rightarrow x=125\times525=\$65,625[/tex]
Therefore, the new york job have to pay him $65,625 in order for the two
salaries to represent the same purchasing power.
