Assume That the Professors at a Local College Have Gone

Multiple Choice

Assume that the professors at a local college have gone without a pay increase for 4 years during a tough time.Suppose that things start to look up and the President of the college wants to make up for lost time.If the CPI in 2002 was 150 and 175 in 2006,how much will salaries have to increase to bring the faculty back up to their real income from 2002?

A) 175.0%
B) 150.0%
C) 25.0%
D) 16.7%
E) 14.3%