Maintain their current purchasing power

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Reference no: EM131011635

Graduating seniors may earn $45,000 each year. If the annual rate of inflation is 2 percent, what must these graduates earn after 25 years to maintain their current purchasing power? Round your answer to the nearest dollar.

If the rate of inflation rises to 4 percent, will they be maintaining their standard of living if they earn $100,000 after 25 years?

please show work.

Reference no: EM131011635

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