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Another question regarding algebra word problem

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

Nov 25th, 2014

FV=PV(1+r/100)^n

FV = $30000
PV= ?
r= 6%
n= 30

So, 30000 = PV(1+6/100)^30
or, PV = 30000/(1+6/100)^3 = $25188.58 (answer)


Please best my answer if helpful. Thanks :)

Nov 25th, 2014

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