Wayne collected indexed pension benefits of $400 a month in 2018. If the price index rose from 210 to 220 in the period 2018-2019, what should his pension benefits for 2019 be?

Question

Quizplus · Accepted Answer

To adjust for inflation, we can use the following formula:

New value = (Old value x New price index) / Old price index

Plugging in the values we have:

New value = (400 x 220) / 210
New value = 419.05

So Wayne's pension benefits for 2019 should be $419.05.

Therefore, the best choice is B.

Wayne Collected Indexed Pension Benefits of $400 a Month in 2018