The problem asks you to calculate the salary you need in 2023 to keep up with inflation, starting with a salary of $65,000 in 2014 and an annual inflation rate of 4%.

We can use the formula for compound interest (since inflation compounds yearly):

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

Where:

• $S$ is the future salary (the amount needed in 2023),
• $P$ is the initial salary (which is $65,000),
• $r$ is the annual inflation rate (4% or 0.04),
• $t$ is the number of years between 2014 and 2023, which is $2023 - 2014 = 9$.

Let's compute this.To keep up with 4% annual inflation, you would need a salary of $92,515.27 in 2023.

Would you like further clarification, or have any questions about the process?

Here are five related questions to explore this topic further:

1. How would the salary change if the inflation rate was 5% instead of 4%?
2. What would your salary need to be in 2030, assuming the same inflation rate?
3. How does compounding inflation compare to a simple inflation calculation over multiple years?
4. If the inflation rate fluctuated yearly, how would you calculate the necessary salary?
5. How does inflation affect the real value of salaries over time?

Tip: Inflation compounds yearly, meaning small increases accumulate significantly over time. Be mindful of this when planning long-term finances.