Answer:
New salary = Original salary x (1 + COLA percentage)^number of years
Step-by-step explanation:
For example, if the original salary is $50,000, and the COLA percentage is 8.7%, the new salary after one year would be:
New salary = $50,000 x (1 + 0.087)^1 = $54,350.00
After two years, the new salary would be:
New salary = $50,000 x (1 + 0.087)^2 = $59,031.45
And so on, for each year the cost-of-living adjustment is applied.
Therefore, the same salary, with a percent growth due to cost-of-living adjustment compounded yearly, would be $54,350.00 after one year, assuming an original salary of $50,000 and a COLA percentage of 8.7%.