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The same salary, with a percent growth due to cost-of-living adjustment compounded yearly, would be $____________

User Lisi
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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%.

User LorenzCK
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