SOLUTION: The US inflation rate is steady at 6.1%. If John expects an amount of USD
200,000.00 for his retirement in 2030, calculate the purchasing power of
this amount. Will he be able to
Question 1194970: The US inflation rate is steady at 6.1%. If John expects an amount of USD
200,000.00 for his retirement in 2030, calculate the purchasing power of
this amount. Will he be able to buy a house that’s worth about USD
100,000.00 today? Answer by ikleyn(52776) (Show Source): You can put this solution on YOUR website! .
Today is the year 2022.
The cost of the $100,000 home in 2030, 8 years later, will be
= 160591.69 dollars, accounting for inflation.
You compare it with $200,000, the expected amount, and decide if it will be enough in the year 2030.