10. john wong makes $63,800 per year maintaining a self-storage business. he was notified of a 3.3% raise in a year in which the cpi index increased by 4.4%. find the gain or loss in his purchasing power. loss of $701.80 gain of $701.80 loss of $2105.40 gain of $2105.40

loss of 701.80

Explanation:
Salary of John = 63,800

Raise in salary is 3.3%

New salary= (3.3%)(63800) = (3.3)(63800)/100 = 2105.4

Since, Cpi index has raise of 4.4%
So for keeping the purchasing power same, updated salary should have been (4.4%)(63800) = (4.4)(63800)/100= 2807.2

So, change in salaries is (2807.2 - 2105.4) = 701.80

He is in loss as he got raise less than the CPI index.

The correct answer is c