Suppose the Cost-Of-Living Index Had Increased by 3% During Each

question 187

Short Answer

Suppose the cost-of-living index had increased by 3% during each of the past 6 yr and that a member of the EUW Union had been guaranteed an annual increase equal to 2% above the cost-of-living index over that period. What would be the present salary of a union member whose salary 6 yr ago was $21,000? Round your answer to the nearest cent.
$__________

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Definitions:

Credits

An accounting entry that increases liabilities and equity or decreases an asset or expense account in double-entry bookkeeping.

Insurance Expense

The cost incurred by a business for insurance coverage, recognized as an expense over the policy period.

Prepaid Insurance

An asset account that represents insurance premiums paid in advance, which are expensed over the period the insurance coverage pertains to.

Accounts Receivable

Funds that customers owe to a company for products or services provided but not yet compensated for.