Question

Your starting salary was $50,000 after 6 years of work, your salary is $75,000 if inflation averaged 5.00% over the same time period, what was your real average per year percentage raise ?

Answer 1

If the inflation rate is 5%, your ending salary would actually have the same buying power of 71,250. So in actuality, you only got a raise of 21,250.

If you need raise per year, divide 21250/6 = 3541.67 per year