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Morgarella [4.7K]
2 years ago
9

After graduating from college in 2010, Art Major's starting salary is $ 50757.00 . Suppose Art Major has a cost of living adjust

ment (COLA) clause, or an escalator clause, in his labor contract so that he will be able to maintain this same level of purchasing power in real terms in 2011 and 2012. Using the information in the table, how much will Art Major earn in 2011 and 2012 if his salary keeps up with inflation? Round your answers to the nearest dollar.
Year CPI
2010 101.77
2011 104.90
2012 111.17

What is Art Major's salary in 2011? $_______________________
What is Art Major's salary in 2012? $_______________________

Social Studies
1 answer:
andreyandreev [35.5K]2 years ago
5 0

Based on the CPI in both 2011 and 2012, the Art Major's salary in both years will be:

  • 2011 - $52,318.06
  • 2012 - $55,445.17

<h3>What was the Art Major's salary in 2011?</h3>

This can be found by the formula:

= Starting salary x (CPI in 2011 / CPI in 2010)

= 50,757 x (104.90 / 101.77)

= $52,318.06

<h3>What was the Art Major's salary in 2012?</h3>

= 2011 salary x (CPI in 2012 / CPI in 2011)

= 52,318.06 x (111.17 / 104.90)

= $55,445.17

Find out more on CPI at brainly.com/question/512131.

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