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ddd [48]
3 years ago
5

Suppose your salary in 2012 is $70,000. Assuming an annual inflation rate of 7%, what salary do you need to earn in 2019 in orde

r to have the same purchasing power? (Round your answer to two decimal places.)
Business
1 answer:
Yanka [14]3 years ago
3 0

Answer:

Salary 2019= $112,404.7

Explanation:

Giving the following information:

Salary 2012= $70,000

Inflation rate= 7%

Salary 2019= ?

To calculate the nominal value of your salary to maintain the purchasing power, we need to use the following formula:

FV= PV*(1+i)^n

FV= 70,000*(1.07^7)

FV= $112,404.7

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<u>Explanation</u>:

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Internet helps in enabling quick collaboration and also reduces the paperwork. As all the information can be confidentially shared and stored using the Internet, the use of paper can be reduced. The time spent for communicating with the client can also be reduced.

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7 0
3 years ago
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harkovskaia [24]

Answer:

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Explanation:

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2 years ago
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5 0
3 years ago
The Superior Company acquired a building for $500,000. The building was appraised at a value of $575,000. The seller had paid $3
MissTica

Answer:

Cost principle.

Explanation:

Cost or historical cost principle.

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