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

Algebra ->  Finance -> 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      Log On


   

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) About Me  (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.