Answer:
Salary= $55,656.15
Explanation:
Giving the following information:
Paul just graduated from college and landed his first "real" job, which pays 37,900 a year.
n= 13 years
inflation= 3% annually
First, we need to calculate the total inflation of the 13 years:
accumulated inflation= 1.03^13= 1.4685
Now, we can calculate the amount necessary to maintain the purchasing power:
Salary= 37,900*1.4685= $55,656.15
