jamal currently earns 20,000 a year in gross wages, On january 1. he is due to receive a 2% COLA. What will his gross income be after the COLA takes effect?
A.$19,600
B.$20,100
C.$20,400
D.$24,000
I got C.
Yay! Right again! You're on a roll!
Hahha thank you !
To calculate Jamal's gross income after the cost of living adjustment (COLA), we need to add the COLA amount to his current gross income.
Step 1: Calculate the COLA amount.
Since Jamal's gross income is $20,000 and he is due to receive a 2% COLA, we need to find 2% of $20,000.
COLA amount = 2% of $20,000
= (2/100) * $20,000
= $400
Step 2: Add the COLA amount to Jamal's current gross income.
Gross income after COLA = Jamal's current gross income + COLA amount
= $20,000 + $400
= $20,400
Therefore, the correct answer is C. $20,400.