contestada

suppose your salary in 2013 is $55,000 if the annual inflation rate is 2% what is the salary do you need to make in 2022 in order for it to keep up with inflation? round your answer to the nearest cent, if necessary.

Respuesta :

Compound amount formula is given by:

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

Where:

P = $55000

r = 2% = 0.02

t = 2022 - 2013 = 9 years

n = 1

Therefore, Substituting the given values:

[tex]A=55000(1+\frac{0.02}{1})^{1\cdot9}[/tex]

And solve:

[tex]A=55000(1+0.02)^9=55000(1.02)^9=65730.09[/tex]

Answer: the salary do you need to make is $65730.09