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.

Right!

19,600

To determine Jamal's gross income after the Cost of Living Adjustment (COLA), we need to calculate the increase based on the given 2% COLA.

Step 1: Convert the percentage to decimal form by dividing it by 100.
2% expressed as a decimal is 0.02.

Step 2: Calculate the increase in Jamal's income by multiplying his current gross wages of $20,000 by the COLA decimal.
$20,000 * 0.02 = $400

Step 3: Add the increase in income to his current gross wages to find the new gross income after the COLA.
$20,000 + $400 = $20,400

Therefore, the correct answer is C. $20,400.