Question

if you have $35,000 today and inflation is 2% each year, how much would you need in 15 years to have the same buying power?

Answer 1

Answer:

$47,105.39

Step-by-step explanation:

To calculate how much I would need in 15 years to have the same buying power we'll be using the standard future value formula:

Required amount = amount * (1 + inflation rate)^number years

In this case:

amount = $35,000

inflation rate = 2%

number years = 15

Therefore,

Required amount = $35,000* (1 + 0.02)^15

Required amount = $47,105.39

We can conclude that I would need $47,105.39 in 15 years to have the same buying power.