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.)
FV=PV(1+r/100)^nFV = $30000PV= ?r= 6%n= 30 So, 30000 = PV(1+6/100)^30or, PV = 30000/(1+6/100)^3 = $25188.58 (answer)Please best my answer if helpful. Thanks :)
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