Rollie is entitled to a partial CPP benefit of $778. If inflation is 3 percent, what will he receive monthly in two years?

Question

Quizplus · Accepted Answer

To calculate the monthly benefit in two years, we need to adjust the current benefit for inflation. The inflation rate is 3%, which means that the benefit will increase by 3% each year.In the first year, the benefit will increase by 3%, or $23.34. This brings the benefit to $801.34.In the second year, the benefit will increase by 3% again, or $24.04. This brings the benefit to $825.38.Therefore, Rollie will receive $825.38 monthly in two years.

Rollie Is Entitled to a Partial CPP Benefit of $778