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Cost of living adjustment confusion Using the table below, find the real value of a payment of $2,200 to be received each year given the

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Cost of living adjustment confusion

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Using the table below, find the real value of a payment of $2,200 to be received each year given the following CPI values. Next find the amount that this $2,200 should be adjusted to in order to keep its real value at $2.200. Instructions: Round your answers to two decimal places. Year Real value of CPI Cost-of-living $2, 200 adjusted payment 2015 100 2, 200 2, 200 2016 103 2135 . 92 2017 105 2095 . 24 110 2018 110 2000 220

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