You just graduated from college and landed your first "real" job, which pays $32,000 a year....

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You just graduated from college and landed your first "real" job, which pays $32,000 a year....

You just graduated from college and landed your first "real" job, which pays $32,000 a year. In 12 years how much will you need to earn to maintain the same purchasing power if inflation is 2.50% per year?

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Answer 1

Answer #1

Future Value Fv= Present value Pv Inflation rate no.of periods PV*(1+i)An FV 32000*(1+0.025)^12 $ 43,036.44 C

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