Assume your salary is $55,000 in 2015 and $160,000 in 2045. If inflation has averaged 2% per year, what is the real or differential inflation rate of salary increases?
Added by Earl H.
Step 1
Average Inflation Rate = ((Salary in 2045 - Salary in 2015) / Salary in 2015) * 100 Average Inflation Rate = ((160,000 - 55,000) / 55,000) * 100 Average Inflation Rate = (105,000 / 55,000) * 100 Average Inflation Rate = 190.90% Show more…
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