SOLUTION: Suppose you earn a salary of $24000 per year. About what salary would you need 4 years from now to maintain your purchasing power in case the inflation rate stays at 2.9%?

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Question 609665: Suppose you earn a salary of $24000 per year. About what salary would you need 4 years from now to maintain your purchasing power in case the inflation rate stays at 2.9%?
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 
Hi
salary of $24000 per year. About what salary would you need 4 years from now
to maintain your purchasing power in case the inflation rate stays at 2.9%?
In General A+=+P%281%2Br%2Fn%29%5Ent
A = Accumulated Amount
P= principal = $22400
r= annual rate = .029
n= periods per year = 1
t= years = 1
+A=+25000%281%2B+.029%29%5E%281%2A1%29
A= 25000%281%2B+.029%29%29= $25,725