Algebra

Suppose that an insurance agent offers you a policy that will provide you with a yearly income of $40,000 in 30 years. What is the comparable salary today, assuming an inflation rate of 6% compounded annually? (Round your answer to the nearest cent.)

asked by Anonymous
  1. Hint:Use the compound interest formula
    Future=present*(1+i)^n
    Here
    Future=40000
    n=30
    i=0.06 (6%)
    Solve for Present.

    posted by MathMate
  2. 6964.4

    posted by dd

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