document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1134215>Question 1134215</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 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.) </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #751709 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=751709\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 2019 - 2016 = 3 years.<BR>\n" );
document.write( "30,000 * 1.08^3 = 37,791.36.<BR>\n" );
document.write( "because of inflation, if something cost 30,000 today, it will cost 37,791.36 three years from now.<BR>\n" );
document.write( "in order to pay for that same things three years from now, you need to be making 37,791.36 dollars.<BR>\n" );
document.write( "your salary needs to grow by 8% a year just to keep up with inflation.<BR>\n" );
document.write( "if you make less, you lose buying power.<BR>\n" );
document.write( "if you make more, you gain buying power.<BR>\n" );
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