this is how

First, write the cash flows that you are considering on a time line: 30 31 32 33 34 35 36 60 61 62 63 100 Note that we want to move the $100,000 salary from age 30 (today) to age 61 (31 years from today). To keep up with inflation, our salary must grow by 3% every year. After 31 years, the compound growth would yield: $100,000 * (1.0331) = $250,008