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OpenStudy (anonymous):
What effect does inflation have on your retirement income? at an inflation rate of 3% how much purchasing power would a 40,000 fixed income have in ten years?
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OpenStudy (irishboy123):
discount the income by inflation after 1 yr PP = 40,000*(1-.03) after 2 yrs PP = 40,000*(1-.03)*(1-.03) after 2 yrs PP = 40,000*(1-.03)*(1-.03)*(1-.03)
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