biscms/modibisvi · welcome, Krissy City Un -Print Calculator n 20 of 20 Sapling

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biscms/modibisvi · welcome, Krissy City Un -Print Calculator n 20 of 20 Sapling Learning in 2010, Art Major's starting salary is $35757 00. Suppose Art Major has a cost of After graduating from living adjustment (COLA) dause, i.e. an escalator clause in his this same how much will Art Major be earning in 2011 and 2012 if his salary keeps up with inflation? Round your answers to the nearest dollar. level of power inr Year 2010 2011 2012 CPI 102.77 104.29 109 35 What is Art Major's salary in 20112 Number What is Art Major's salary in 2012? Number Hint

Explanation / Answer

Art major's salary will change in a way that the % change in CPI equals the % change in his/her salary.

The % change in CPI from 2010 to 2011 is = (104.29 - 102.77)/102.77 * 100 = 1.52/102.77 * 100 = 0.01479 * 100 = 1.479%

Therefore, Art Major's salary will also increase by 1.479% from 2010 to 2011. Art Major's salary will increase in 2011 by = $35,757 * 1.479/100 = 528.86

Art Major's salary in 2011 = 35757.00 +  528.86 = 36285.86

The % change in CPI from 2010 to 2011 is = (109.35 - 104.29)/104.29 * 100 = 5.06/104.29 * 100 = 0.048519 * 100 = 4.85%

Therefore, Art Major's salary will also increase by 4.85% from 2011 to 2012. Art Major's salary will increase in 2012 by = 36285.86 * 4.85/100 = 1759.86

Art Major's salary in 2012 = 36285.86 + 1759.86 = 38045.72

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