# Math

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

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1. (218.4/208.0)* £265 = £278.25

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

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