Problema Solution
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 4% compounded annually? (Round your answer to the nearest cent.)
Answer provided by our tutors
Comparable Salary Today = $9,249.56
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FV = $30,000
R = 4%
N = 30
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PV = FV / (1 + R) ^N
PV = $30,000 / (1+4%)^30
PV = $9,249.56