Finance

1. Paul just graduated from college and landed his first "real" job, which pays $46,000 a year. In 6 years, what will he need to earn to maintain the same purchasing power if inflation averages 4 percent? Click on the table icon to view the FVIF table 1 The future value, FV, Paul will need to earn if inflation averages 4 percent is $ (Round to the nearest cent.) 1: Data Table 1% 2% 3% 4% 7% 8% 9% 10% 1 1.080 2 1.030 1.061 1.093 1.166 1.260 3 1.010 1.020 1.030 1.041 1.051 1.062 1.020 1.040 1.061 1.082 1.104 1.126 1.149 1.070 1.145 1.225 1.311 1.403 1.501 1.040 1.082 1.125 1.170 1.217 1.265 1.316) 1.090 1.188 1.295 1.412 1.539 1.677 4 1.100 1.210 1.331 1.464 1.611 1.772 1.360 1.126 1.159 1.194 5 1.469 6 1.587 7 1.072 1.230 8 1.172 1.083 1.094 1.105 1.116 9 1.267 1.305 1.344 1.384 1.714 1.851 1.999 2.159 1.369 1.423 1.480 1.195 1.219 1.243) 1.606 1.718 1.838 1.967 2.105 1.828 1.993 2.172 2.367 2.580 1.949 2.144 2.358 2.594 2.853 10 11 1.539 2.332 12 2.518 2.813 1.268 1.294 1.601 1.665 13 2.720 1.127 1.138 1.149 1.161 1.173 1.426 1.469 1.513 1.558 Compound Sum of $1 (FVIF) 5% 6% 1.050 1.060 1.103 1.124 1.158 1.191 1.216 1.262 1.276 1.338 1.340 1.419 1.407 1.504 1.477 1.594 1.551 1.689 1.629 1.791 1.710 1.898 1.796 2.012 1.886 2.133 1.980 2.261 2.079 2.397 2.183 2.540 2.292 2.693 2.407 2.854 2.527 3.026 2.653 3.207 2.786 3.400 2.925 3.604 3.072 3.820 3.225 4.049 3.386 4.292 4.322 5.743 7.040 10.286 11.467 18.420 3.066 3.342 14 3.138 3.452 3.797 4.177 1.319 2.937 2.252 2.410 2.579 2.759 2.952 3.159 1.732 1.801 15 3.172 16 1.873 3.426 1.346 1.373 1.400 1.428 1.605 1.653 17 1.184 1.948 3.700 3.642 3.970 4.328 4.717 5.142 5.604 18 1.196 1.7021 3.996 2.026 2.107 4.595 5.054 5.560 6.116 6.727 19 1.754 4.316 1.208 1.220 1.232 1.457 1.486 20 1.806 2.191 21 1.516 1.860 2.279 6.109 7.400 3.380 3.617 3.870 4.141 4.430 4.741 5.072 5.427 22 1.245 1.546 2.370 6.659 4.661 5.034 5.437 5.871 6.341 6.848 23 1.577 1.257 1.270 1.916 1.974 2.033 2.094 2.427 24 8.140 8.954 9.850 1.608 1.641 7.258 7.911 8.623 25 10.835 1.282 1.348 2.465 2.563 2.666 3.243 4.801 7.107 30 1.811 7.612 10.063 13.268 17.449 40 14.974 1.489 1.645 2.208 2.692 3.262 4.384 21.725 46.902 31.409 74.358 45.259 117.391 50 29.457