What is the differential inflation rate in felix salary

Reference no: EM132168938

Question: Felix Jones, a recent engineering graduate, expects a starting salary of $35,000 per year. His future employer has averaged 5% per year in salary increases for the last several years. If inflation is estimated to be 4% per year for the next 3 years, how much, in year-1 dollars, will Felix be earning each year? What is the differential inflation rate in Felix's salary?

Reference no: EM132168938

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