To calculate the salary you would need in 2018 to have the same purchasing power as in 2014, we need to account for the effect of inflation over the 4-year period. The formula to adjust for inflation is:

$\text{Future Salary} = \text{Current Salary} \times (1 + \text{Inflation Rate})^n$

Where:

• Current Salary is $50,000,
• Inflation Rate is 3% or 0.03,
• n is the number of years, which is 4 (from 2014 to 2018).

Now, let's calculate:

$\text{Future Salary} = 50,000 \times (1 + 0.03)^4$

$\text{Future Salary} = 50,000 \times (1.03)^4$

$\text{Future Salary} = 50,000 \times 1.125509$

$\text{Future Salary} = 56,275.45$

So, to maintain the same purchasing power in 2018, you would need to earn $56,275.45.

Would you like further details or have any questions?

Here are 5 related questions to expand on this concept:

1. How would the required salary change if the inflation rate was 4% instead of 3%?
2. What would the salary be if the period was 5 years instead of 4 years?
3. How would a deflation rate of 1% impact the salary calculation?
4. What if the inflation rate varied each year? How would you calculate the necessary salary?
5. How does inflation impact retirement savings over time?

Tip: It's always good to keep track of inflation and adjust your savings or income goals accordingly to maintain your purchasing power!