If the rate of inflation for the next 20 years is 2.5% per year, what annual income will be needed 20 years from now to have the same purchasing power as a $30,000 annual income today?

39158

49158

59158

69158

Correct Answer: 49158

Explanation:

i=j/m

FV = PV(1+ i)^n

Question

If the rate of inflation for the next 20 years is 2.5% per year, what annual income will be needed 20 years from now to have the same purchasing power as a $30,000 annual income today?

Accepted Answer

i=j/m FV = PV(1+  i)^n

If the rate of inflation for the next 20 years is 2.5% per year, what annual income will be needed 20 years from now to have the same purchasing power as a $30,000 annual income today?

Discussion & Comments