To determine what salary you would need in 2023 to have the same purchasing power as $70,000 in 2015, given a 6% annual inflation rate, we can use the formula for compound interest, which applies here for inflation:

$\text{Future Salary} = \text{Present Salary} \times (1 + \text{inflation rate})^n$

Where:

• $\text{Present Salary} = 70,000$
• $\text{inflation rate} = 6\% = 0.06$
• $n = 2023 - 2015 = 8$ years

Let's calculate this.

$\text{Future Salary} = 70,000 \times (1 + 0.06)^8$

I'll now compute this.To maintain the same purchasing power as $70,000 in 2015, considering an annual inflation rate of 6%, you would need to earn approximately $111,569.37 in 2023.

Would you like further details on this calculation or have any questions?

Here are five related questions for practice:

1. What would your salary need to be in 2025 with the same inflation rate?
2. How would the future salary change if the inflation rate was 3% instead of 6%?
3. What would happen to purchasing power if inflation dropped to 0%?
4. How can you adjust your savings to counteract the effects of inflation?
5. What would your salary need to be in 2023 with a 7% inflation rate?

Tip: Keep track of inflation when negotiating raises to ensure your purchasing power stays the same or increases!