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

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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) About Me  (Show Source):
You can put this solution on YOUR website!
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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 = 500000%2A%281%2B0.062%29%5E6,


and the answer is


    annual salary in 6 years = 500000%2A1.062%5E6 = Php 717,327  (rounded to the nearest integer value).    ANSWER

Solved.