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Morgarella [4.7K]
3 years ago
7

Suppose that an insurance agent offers you a policy that will provide you with a yearly income of $73,000 in 30 years. What is t

he comparable annual salary today, assuming an annual inflation rate of 4% (compounded annually)? (Round your answer to the nearest cent.)
Mathematics
1 answer:
pickupchik [31]3 years ago
8 0

Answer:

Comparable annual salary today is $22,507.26

Step-by-step explanation:

Data provided in the question:

Yearly income = $73,000

Time period, n = 30 years

Annual inflation rate = 4% = 0.04

Now,

Using the compounding formula, we have

Future value  = Present value × (1 + rate of inflation)ⁿ

or

$73,000 = Present value × (1 + 0.04)³⁰

or

$73,000 = Present value × 3.243

or

Present value = $22,507.26

Hence,

Comparable annual salary today is $22,507.26

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to solve for the inverse of a function you do 4 steps:
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so we have
f(x)=\sqrt[3]{x+2}
subsitute f(x) with y
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the answer is f⁻¹(x)=x^{3}-2



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