Say I have 30,000 annual income and annual inflation rate is 12%. What is the income for the next 3 years at this rate?
Interest on income, inflation question?
There are two ways to answer this. I%26#039;m not sure which way you%26#039;re talking about.
1) In 3 years, you%26#039;ll need $42,147.84 to buy what $30,000 will today @ 12% inflation compounded annually.
2) In 3 years, your $30,000 will have the purchasing power that $21,353.41 has today (again, assuming 12% inflation compounded annually).
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