Suppose art major has a cost of living adjustment clause

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After graduating from college in 2010, Art Major\'s starting salary is $45757.00. Suppose Art Major has a cost of living adjustment (COLA) clause, i.e. an escalator clause in his labor contract so that he will be able to maintain this same level of purchasing power in real terms in 2011 and 2012. Using the information in the table below, how much will Art Major be earning in 2011 and 2012 if his salary keeps up with inflation? Round your answers to the nearest dollar.

Year 2010 101.57

Year 2011 104.90

Year 2012 108.04

What is Art's Salary in 2011? 2012?

Reference no: EM131009817

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