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A university graduate earns a starting salary of $ 4 0 , 0 0 0 per year, and expects to receive a 6 % increase

A university graduate earns a starting salary of $40,000 per year, and expects to receive a 6% increase in salary in each of the next 5 years. If the inflation rate is 25%, what will be her real income in terms of today's dollars at the end of five years?
Multiple Choice
$33,818
$45,356
$47,312
$53,529
$60,563
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