In 1931, President Herbert Hoover was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 1931 and 237 for 2015. President Hoover's 1931 salary was equivalent to a 2015 salary of about单项选择题
A
$4,965.
B
$1,057,894.
C
$16,080,001.
D
$1,169,408.

Question

In 1931, President Herbert Hoover was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 1931 and 237 for 2015. President Hoover's 1931 salary was equivalent to a 2015 salary of about单项选择题

A

$4,965.

B

$1,057,894.

C

$16,080,001.

D

$1,169,408.

BlackTom AI · Accepted Answer

Use CPI adjustment: equivalent modern salary = 1931 salary × (CPI_2015 / CPI_1931).

1) Relevant concepts
The Consumer Price Index (CPI) measures the average price level; to convert a past dollar amount into equivalent present dollars, multiply by the ratio of the later CPI to the earlier CPI. This preserves purchasing power.

2) Step-by-step reasoning and calculations
Given: 1931 salary = $75,000; CPI_1931 = 15.2; CPI_2015 = 237.

Compute the CPI ratio:
237 ÷ 15.2 = 2370 ÷ 152 = 1185 ÷ 76 = 15.592105263157895 (approx).

Multiply the 1931 salary by this ratio:
$75,000 × 15.592105263157895
= $75,000 × 15 + $75,000 × 0.592105263157895
= $1,125,000 + $44,407.8947368421
= $1,169,407.8947368421

Round to the nearest dollar: $1,169,408.

3) Why this is correct
This calculation uses the standard CPI-based conversion method so that the amount reflects the same purchasing power in 2015 dollars as $75,000 did in 1931. The arithmetic steps show the precise ratio and multiplication.

4) Why the other choices are incorrect
- $4,965 is far too small (would result from dividing instead of multiplying or using an incorrect ratio).
- $1,057,894 is smaller than the correct value; it likely comes from an arithmetic error or using a slightly different CPI ratio.
- $16,080,001 is an order of magnitude too large, indicating a wrong factor or misplacement of a decimal.

Conclusion: The correct 2015 equivalent is $1,169,408, which matches the provided answer.

In 1931, President Herbert Hoover was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 1931 and 237 for 2015. President Hoover's 1931 salary was equivalent to a 2015 salary of about单项选择题

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