The value of an index-linked pension is updated each September using the RPI. In September 2007 the pension paid £265. Calculate the value of the pension in September 2008. The value of the RPI was 208.0 in September 2007 and 218.4 in September 2008

(218.4/208.0)* £265 = £278.25

In the USA, the RPI (Retail Price index) is called the COLA (Cost of Living Adjustment).

To calculate the value of the pension in September 2008, you need to consider the change in the RPI (Retail Price Index) between September 2007 and September 2008.

The formula to calculate the updated value of the pension is:
Updated value = Initial value x (Current RPI value / Initial RPI value)

Let's plug in the given values:

Initial value of pension in September 2007 = £265
Initial RPI value in September 2007 = 208.0
Current RPI value in September 2008 = 218.4

Therefore, the calculation is:

Updated value = 265 x (218.4 / 208.0)

To simplify the calculation:

Updated value = 265 x (1.05)

Updated value = £278.25

So, the value of the pension in September 2008 would be £278.25.