QUESTION 5

1. Suppose you'll have an annual nominal income of$40,000for each of the next three years, and the inflation rate is6 percent per year. The table below shows your Nominal Income and the value of your real incomefor years 2 and 3.
2. Nominal IncomeReal IncomeYear 1 = $40,000?Year 2 = $40,000$35,600Year 3 = $40,000$33,585
3. Find the value of your real incomefor Year 1.
4. Round your answer to a whole number.