SOLUTION: Suppose your annual salary today is Php 500 000.00. What must be your annual salary in 6 years - that is a salary that will have the same purchasing power? Consider the inflation

Question 1154155: Suppose your annual salary today is Php 500 000.00. What must be your annual salary in 6 years - that is a salary that will have the same purchasing power? Consider the inflation rate is 6.2%.
Answer by ikleyn(52855) (Show Source): You can put this solution on YOUR website!
.

Definition

    Inflation is a quantitative measure of the rate at which the average price level of a basket 
    of selected goods and services in an economy increases over a period of time.

Then it is clear that the formula is


    annual salary in  6 years = ,


and the answer is


    annual salary in 6 years =  = Php 717,327  (rounded to the nearest integer value).    ANSWER

Solved.

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