Expected wage growth, Would you be better off in real terms

Expected wage growth

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Reference no: EM131957328

Would you be better off in real terms if you take a job earning $80,000 per year with 3% expected wage growth for the next 40 years, or accepting $50,000 per year with expected wage growth of 8% for 40 years if inflation is estimated to be 2% per year? (PV for 50k is $7,365,690 and PV for 80k option is $3,818,765)

Reference no: EM131957328

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Expected wage growth : Would you be better off in real terms if you take a job earning $80,000 per year with 3% expected wage growth for the next 40 years,

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