Which of the following salaries will have a purchasing power of $24,035 if the inflation rate is five percent?
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To determine which salary will have a purchasing power of $24,035 given an inflation rate of five percent, we need to account for the effect of inflation on the value of money.
Step 1: Calculate the inflation-adjusted value of $24,035
Inflation rate is given as five percent, which means the value of money decreases by five percent each year.
To calculate the inflation-adjusted value, we divide the desired value ($24,035) by (1 + inflation rate in decimal form). In this case, it will be $24,035 / (1 + 0.05), which is approximately $22,890.48.
Step 2: Compare the salaries
Now, we need to compare the given salaries to find the one that matches the inflation-adjusted value calculated above.
Since the list of salaries is not provided, you will need to input the salaries so that we can determine which one matches the inflation-adjusted value.