As a graduating senior, ChunKumora of Manhattan, Kansas, is eager toenter the job market at an anticipated annual salary of $54,000. Assuming an average inflation rate of 3 percent and an equalcost-of-living raise, what will his salarypossibly become in ten years? In 20 years? (Hint: UseAppendix A.1.) To make real economic progress, howmuch of a raise (in dollars) does Chun need to receivenext year and the year after?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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As a graduating senior, Chun
Kumora of Manhattan, Kansas, is eager to
enter the job market at an anticipated annual salary of $54,000. Assuming an average inflation rate of 3 percent and an equal
cost-of-living raise, what will his salary
possibly become in ten years? In 20 years? (Hint: Use
Appendix A.1.) To make real economic progress, how
much of a raise (in dollars) does Chun need to receive
next year and the year after?

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