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Annual nominal income

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Reference no: EM131650786

Suppose you'll have an annual nominal income of $50,000 for each of the next 3 years, and the inflation rate is 5 percent per year.

(Hint: Use the following formula): I0 / (1 + r)t where I0 is the nominal income, r is the inflation rate and t is the number of years.

Reference no: EM131650786

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