Suppose your salary in 2012 is $75,000. If the annual inflation rate is 6%, what salary do you need to make in 2021 in order to keep up with inflation? Round your answer to the nearest cent

Respuesta :

The salary needed to be made in 2021 in order to keep up with the inflation is $126710.92

What is an equation?

An equation is an expression that shows the relationship between two or more variables and numbers.

Let y represent the money needed to keep up x years since 2012. Since the inflation is 6%, hence:

y = 75000(1.06)ˣ

in the year 2021, x = 9:

y = 75000(1.06)⁹ = 126710.92

The salary needed to be made in 2021 in order to keep up with the inflation is $126710.92

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