Table 13-20 Salaries in Major League Baseball Have Soared Over the Last

Essay

Table 13-20
$$\begin{array} { | c | c | c | } \hline \text { Year } & \text { Median Salary: } & \text { CPI } ( \mathbf { 1 9 8 2 - 1 9 8 4 = } \\&\text { New York Yankees } & \mathbf { 1 0 0 } ) \\\hline 1989 & \$ 500,000 & 124 \\\hline 2009 & 5,200,000 & 216 \\\hline\end{array}$$
Salaries in major league baseball have soared over the last 30 to 40 years. Some of the salary increase is due to inflation. The table above reports the consumer price index and the median nominal salary of the New York Yankees for 1989 and 2009.
Source: USA Today Salaries Database, asp.usatoday.com/sports/baseball/salaries/default.aspx
-Refer to Table 13-20.Calculate the real median salary of the New York Yankees in both 1982-1984 dollars and 2009 dollars.Calculate the percentage increase in the median salary of the Yankees from 1989 to 2009 in both nominal terms and in real terms.