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 think its c...
Yes. C is right.
thanks! Im glad you help me(:
You're welcome.
To calculate Jamal's gross income after the 2% COLA (Cost of Living Adjustment), we need to figure out how much the 2% increase is on his current income of $20,000. Here are the steps to find the answer:
Step 1: Calculate 2% of $20,000:
2% = 2/100 = 0.02
2% of $20,000 = $20,000 x 0.02
Step 2: Add the calculated increase to Jamal's current income:
New Gross Income = $20,000 + (2% of $20,000)
Step 3: Simplify the expression in Step 2:
New Gross Income = $20,000 + ($20,000 x 0.02)
Calculating the expression:
New Gross Income = $20,000 + ($20,000 x 0.02)
New Gross Income = $20,000 + ($400)
New Gross Income = $20,400
Therefore, the correct answer is C. $20,400.