Asked by m

If a person makes $30,000 in
2004 and the inflation rate is 4% annually, how much is this
salary worth in the year 2008 (in terms of 2004 dollars)?

What I have is 2004=30000
2005=30000x1.04=32448
then continuing through the years to
2008=35095.76
30000/35095.76x30000=25644.12 is what his salary would be worth in 2008 in terms of 2004 dollars

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