All right. Let's see how you guys did calculating Gen X Johnny's annual salary and Gen X Johnny's home price in $2016. So let's go ahead and we'll do it down here. So this was A right here that we calculated his part-time wage. Let's go ahead and calculate We'll do it down here. Part b, we'll do his annual salary. So his annual salary, let's see what it is in $2016. He was making $14,000 an hour in his annual salary just out of college. So we'll take that 14,000 from 1975, and we'll multiply it by today's CPI of 240 in 2016 divided by the 1975 CPI of 53.8, and let's go ahead and see what that's worth today.
14000 × 240 × 1 53.8It tells us that his wage right out of college was $62,157.53. That's a pretty good starting wage out of college, I would say. $62,000 straight out of college, annual salary $14,000 is the equivalent of $62,000 in twenty $2016. Let's go ahead and find that home price. So he bought a 3 bedroom home in 1975 for $42,000. So 3 bedroom home, it was $42,000. And again, notice, we're using the same calculation. Right? We're taking that number that what it was worth in 1975. Let's see what it's worth in 2016.
42000 × 240 × 1 53.8It gives us a 3 bedroom home for a $187,420. So that's actually a pretty good price at least here in Miami. I would say if you find a 3 bedroom home for that price here in Miami, it's a pretty good steal right there. All right? So that is how we would calculate what those prices were in 1975 and adjust them for inflation to see what their purchasing power is in today's dollars. Cool? So I actually used some pretty realistic numbers in this question. So every time you hear hey, you Millennials are so lazy, you got some math to back it up now too. All right. Let's go ahead and move on to the next problem.