To calculate the salary you would need in 2021 to keep up with inflation from 2014, given an annual inflation rate of 3%, we can use the formula for compound interest, which is also used to calculate inflation over time:

$S = P(1 + r)^t$

Where:

• $S$ is the salary in 2021.
• $P$ is the initial salary in 2014 (which is $60,000).
• $r$ is the annual inflation rate (3%, or 0.03 as a decimal).
• $t$ is the time in years (from 2014 to 2021, which is 7 years).

Now, we substitute the values:

$S = 60,000(1 + 0.03)^7$

Let me calculate that for you.The salary needed in 2021 to keep up with a 3% annual inflation rate, starting from a $60,000 salary in 2014, would be approximately $73,792.43.

Would you like more details or have any questions about the calculation?

Here are 5 related questions to explore further:

1. How does a different inflation rate affect future salary requirements?
2. What if the inflation rate varies each year? How would you calculate that?
3. How would a 2% raise each year impact salary in comparison to inflation?
4. What is the real value of money after adjusting for inflation over a long period?
5. How does inflation affect savings and investments?

Tip: Inflation compounding over time can significantly reduce purchasing power, so it’s important to factor it into long-term financial planning.