algebra

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Suppose that an insurance agent offers you a policy that will provide you with a yearly income of $50,000 in 30 years. What is the comparable salary today, assuming an inflation rate of 3% compounded annually?

My answer is $20,559.34, however, the module says its incorrect.

  • algebra -

    P(1.03)^30 = 50000
    P = 50000/1.03^30
    = 20599.34

    the same as yours.

    No idea why they wont' take it

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