uppose your salary in 2012 is $55,000. If the annual inflation rate is 2%, what salary do you need to make in 2019 in order for it to keep up with inflation? Round your answer to the nearest cent, if necessary.
To calculate the salary needed in 2019 to keep up with inflation, we can use the formula:
Salary in 2019 = Salary in 2012 * (1 + Inflation Rate)^Number of years
Number of years = 2019 - 2012 = 7
Salary in 2019 = $55,000 * (1 + 0.02)^7
Salary in 2019 = $55,000 * (1.02)^7
Salary in 2019 = $55,000 * 1.146927
Salary in 2019 = $63,081.02
Therefore, you need to make a salary of $63,081.02 in 2019 to keep up with a 2% annual inflation rate.