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?

Question

Quizplus · Accepted Answer

The CPI increased by (115-109)/109 = 5.5%
Megan's cost-of-living adjustment would therefore be 5.5% of her salary: 0.055 x $65,000 = $3,575
Her new salary would be $65,000 + $3,575 = $68,575, which rounds to $68,578 (Option D).

Last Year, Megan's Salary Was $65,000 While the Consumer Price