Answer:
$12,332.7467
Explanation:
Given that,
Yearly income, Amount = $40,000
Time period, t = 30 years
Annual inflation rate, r = 4%
Amount = Principle × (1 + r/100)^t
$40,000 = Principle × (1 + 4/100)^(30)
$40,000 = Principle × (1 + 0.04)^(30)
$40,000 = Principle × (1.04)^30
$40,000 = Principle × 3.24339751
$40,000 ÷ 3.24339751 = Principle
$12,332.7467 = Principle
Therefore, the comparable annual salary today, assuming an annual inflation rate of 4% is $12,332.7467.
