Suppose that an insurance agent offers you a policy that will provide you with a yearly income of $40,000 in 30 years. What is the comparable salary today, assuming an inflation rate of 6% compounded annually? (Round your answer to the nearest cent.)

Answer 1

Hint:Use the compound interest formula
Future=present*(1+i)^n
Here
Future=40000
n=30
i=0.06 (6%)
Solve for Present.

Answer 2

6964.4