Question

Last year, megan's salary was $65,000 while the consumer price index increased from 109 to 115. if megan received a cost-of-living adjustment, what would her salary be?

Answer 1

The CPI increased by 5.5% from 109 to 115, so Megan would need the same pay increase to keep up with inflation.

So 65,000 X 1.055 = 68,575