Paul just graduated from college and landed his first? "real" job, which pays ?$36,200 a year

Finance May 18, 2021

Paul just graduated from college and landed his first? "real" job, which pays ?$36,200 a year. In 12 ?years, what will he need to earn to maintain the same purchasing power if inflation averages 4 ?percent?

The future? value, FV?, Paul will need to earn if inflation averages 4 percent is ?$?

Expert Solution

Computation of the future value:-

FV = PV*(1+rate)^n

= $36,200*(1+4%)^12

= $36,200*1.6010

= $57,957.37

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote