00:01
Hi, today we are solving the question in which year first dollar 40 ,000 plus 5 % cola, that is cost of living adjustment.
00:15
So it is given by 40 ,000 into 40 ,000 into 0 .05.
00:31
So that is equal to dollar.
00:34
$2 ,000.
00:37
So we can say that it will be equal to $40 ,000 plus $2 ,000.
00:49
So that is equals to $142 ,000.
00:52
So less 5 % inflation rate.
00:56
So on $142 ,000 into $0 .05.
01:04
So it will be equal to $1 ,100.
01:08
So we can see that therefore the real value of the year's salary of the year's salary will be equal to 42 ,000 minus 2100.
01:34
So it is equals to $39 ,900.
01:39
Dollars so we can see that therefore the real value of years salary is dollar 39 ,900.
01:57
Now similarly taking the year two.
02:01
So from here year two salary is taken as 40 ,000 plus 5 % cola.
02:15
It is cost of living adjustment so 40 ,000 plus 0 not plus multiplied to 0 .05 is equals to dollar 2000.
02:33
Now from here 40 ,000 plus 2000 will be equal to dollar 42 ,000.
02:43
That means less 10 % inflation rate.
02:47
So 42 ,000...