SOLUTION: Suppose your salary in 2016 is $30,000. Assuming an annual inflation rate of 8%, what salary do you need to earn in 2019 in order to have the same purchasing power? (Round your ans

Question 1134163: Suppose your salary in 2016 is $30,000. Assuming an annual inflation rate of 8%, what salary do you need to earn in 2019 in order to have the same purchasing power? (Round your answer to two decimal places.)

Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
your salary in 2016 is 30,000.
annual inflation rate is 8%.
in order to keep up with inflation, your salary must increase by 8% per year.
therefore, you must make 30,000 * 1.08 ^ (2019-2016) = 37,791.36 in 2019.

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