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?

20,000 * 1.02 = ?

20400

To calculate Jamal's gross income after the 2% COLA, you need to multiply his current gross income by 1 plus the COLA rate.

Here's how you can do it step by step:

1. Convert the COLA rate from a percentage to a decimal by dividing it by 100. In this case, the COLA rate is 2%, so it would be 2/100 = 0.02.

2. Add 1 to the COLA rate in decimal form. In this case, 1 + 0.02 = 1.02.

3. Multiply Jamal's current gross income by the result from step 2. So, $20,000 * 1.02 = $20,400.

Therefore, Jamal's gross income after the COLA takes effect will be $20,400.