Amy G.

asked • 01/21/14

investment

Graduating seniors may earn $45000 each year.  If the annual rate of inflation is 2 percent, what must these graduates earn after 20 years to maintain their current purchasing power?  If the rate of inflation rises to 4 percent, will they be maintaining their standard of living if they earn $100000 after 20 years?

1 Expert Answer

By:

Steve S. answered • 01/21/14

Tutor
5 (3)

Tutoring in Precalculus, Trig, and Differential Calculus

Parviz F.

If inflation rate compounds , it explodes. It must be average rate.
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01/21/14

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