The table below provides the nominal annual salary of U.S. senators and the CPI data (Base Year: 2005).

| Year | Nominal Annual Salary | CPI |
|------|-----------------------|------|
| 1990 | $98,400 | 66.9 |
| 1995 | $133,600 | 78.1 |
| 2000 | $141,300 | 88.2 |
| 2005 | $162,100 | 100.0|
| 2008 | $169,300 | 110.3|
| 2019 | $174,000 | 128.1|

Calculate the real annual salary (expressed in 2005 constant prices) of U.S. senators for the year 2019.

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To calculate the real annual salary of the U.S. senators for 2019 in 2005 constant prices, use the formula: Real salary = (Nominal salary) x (CPI in base year / CPI in current year).

Explanation:

To calculate the real annual salary of the U.S. senators for the year 2019 in 2005 constant prices, we need to adjust for inflation using the Consumer Price Index (CPI). We can use the formula: Real salary = (Nominal salary) x (CPI in base year / CPI in current year).

For 2019, the CPI is 128.1 and the nominal annual salary is $174,000. Plugging these values into the formula, we get: Real salary = $174,000 x (100.0 / 128.1) = $135,881.02 (rounded to the nearest cent).

Therefore, the real annual salary of U.S. senators in 2019, expressed in 2005 constant prices, is approximately $135,881.02.

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