Suppose that your salary is $35,000 in year one, will increase at 6% per year through year 4, and is expressed

in actual dollars as follows: End of Year Salary (A$) 1 $35,000 2 37,100 3 39,326 4 41,685 If the general price inflation is expected to average 8% per year for the first two years and 7% per year for the last two years, what is the Question What is the real dollar equivalent of these actual dollar salary amounts? Assume that the base period is year one. 35,000 2 34,351.85 3 34,030.81 4 33,712.31 If your personal MARR is 10% per year, calculate the real interest rate. Yr 1-2 = 0.0185 Yr 3-4 = 0.0280 Final Answer End of Year Salary (R$) 1