Question

As a graduating senior, Chun Kumora of Manhattan, Kansas, is eager to enter the job market at an anticipated annual salary of $41,000. Assuming an average inflation rate of 2 percent and an equal cost-of-living raise, what will his salary possibly become in 11 years?
What will his salary be in 21 years? Round your answer to the nearest dollar. Round Future Value of a Single Amount in intermediate calculations to four decimal places
make real economic progress, how much of a raise (in dollars) does Chun need to receive next year and the year after?

Chun must receive raise greater than $ for the next year and greater than $
for the year after.

Answer 1

1. Chun Kumora's salary after 11 years will be $63,117.6200.

2. Chun Kumora's salary after 21 years will be $93,429.4900.

3. Chun must receive raise greater than $42,640 ($41,000 x 1.04) for the next year and greater than $44,345.6000 ($42,640 x 1.04) for the year after.

How are the future salaries determined?

The future salaries (values) can be determined using an online finance calculator that compounds with the sum of the average inflation rate of 2% and the cost-of-living raise of 2% for 11 and 21 years, respectively.

Data and Calculations:

Future Value in 11 years:

N (# of periods) = 11 years

I/Y (Interest per year) = 4% (2% x 2)

PV (Present Value) = $41,000

PMT (Periodic Payment) = $0

Results:

FV = $63,117.62 ($41,000 + $22,117.62)

Total Interest = $22,117.62

Future Value in 21 years:

N (# of periods) = 21 years

I/Y (Interest per year) = 4% (2% x 2)

PV (Present Value) = $41,000

PMT (Periodic Payment) = $0

Results:

FV = $93,429.49 ($41,000 + $52,429.49)

Total Interest = $52,429.49

Learn more about future values at brainly.com/question/24703884

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