Posted by **ryan** on Thursday, February 25, 2010 at 9:20am.

Suppose you’ll have an annual nominal income of $40,000 for each of the next 3 years, and the inflation rate is 4 percent per year. Find the real value of your $40,000 salary for each of the next 3 years.

- home economics -
**bobpursley**, Thursday, February 25, 2010 at 9:54am
future value: 40,000 (1/(1.04)^n

You can use google calculator for this.

put this in the google search window, for year 3

40000/(1.04)^3

- home economics -
**ryan**, Thursday, February 25, 2010 at 12:16pm
can you explain why you use that formula?

- home economics -
**jay**, Saturday, March 29, 2014 at 9:42am
nice

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