Ruth collected pension benefits of $220 a month in 2008. If the price index rose from 90 to 105 in the period 2009-2010, what should her pension benefits for 2010 be?

Name: Ruth collected pension benefits of $220 a month in 2008. If the price index rose from 90 to 105 in the period 2009-2010, what should her pension benefits for 2010 be?
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Quizplus · Accepted Answer

To adjust for inflation, we use the formula: New Pension = Old Pension * (New Index / Old Index). So, $220 * (105 / 90) = $256.67.

Ruth Collected Pension Benefits of $220 a Month in 2008