Between the years 1984 and 1994, the average inflation rate was 6.3%. Find the salary in the year 1994 that would be equivalent to a $40,000 salary in 1984

Question

Between the years 1984 and 1994, the average inflation rate was 6.3%. Find the salary in the year 1994 that would be equivalent to a $40,000 salary in 1984?

Answer 1

Danielle,

               S(1994)=40,000*(1+.063)¹⁰ =73,687. Let me know if this is what you were looking for.

 

Jim