Compute the future value of a $200 cash flow for the following combinations of rates and times. Do not round calculations. Round your answers to 2 decimal places.

1. R = 4%; t = 20 years

Future value

An engineer in 1950 was earning $6,500 a year. In 2015 she earned $85,000 a year. However, on average, prices in 2015 were higher than in 1950. What was her real income in 2015 in terms of constant dollars.

CPI percent change since 1950

1950 25.0

1960 29.8 +19.2%

1970 39.8 +59.2%

1980 86.3 +245.2

1990 133.8 +435.2

2000 174.0 +596.0

2010 219.2 +776.8

2015 236.5 +846.0