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Please define unusual terms. How does this sort of thing work? Explain your understanding of one principle.
 
So I'm thinking it's a part of a percent increase equation.

(400-300)/400 = .25 or 25%
$24,000 * 25% = 6000
$24,000 + 6000 + 24,600


Am I on the right path? Math has always been my worst subject. I have a tendency to just start assuming and I end up far far away from where I'm supposed to be.
 
hokey smokes!! Let's think about this one pece at a time.

$6,000 - Okay, we established that this is 6%
For inflations, we drop down to 1.3% -- You should notice that this is MUCH LESS than the 6% for FTE.
If you decide anything over (very roughly) $7,500 is the right answe, you had better think again.

You must do something about that arithmetic. 24000 + 6000 = 30000. How did you manage 24600? Again, 1.3% isn't all that much. When you move from 24000 to 57000, giant alarms should ahve gone off in your head.

Why would inflation apply only at the end of the year? Doesn't it accumulate about like interest?

You must do something about that arithmetic. Again, 1.3% isn't all that much. When you move from 24000 to 57000, giant alarms should ahve gone off in your head.

$24,000 * 1.3% + 24,000 = 312.00
 
The 24,600 is me stupidly leaving out the extra 0 in 6,000 when adding 24,000 +6,000. Sorry by the time I wrote this, it was way past my bed time.
 
Well, problem is somewhat confusingly worded...
IF purpose is to teach "growth using percentages", then (as TK told you), works like this:
Assume you deposit $1000 in an account, where you'll be paid 9% 1st year, 12% 2nd year, 8% 3rd year:
Code: 
YEAR PERCENT INTEREST BALANCE
 0                    1000.00
 1     9%     90.00   1090.00 : 1000.00 * .09 =  90.00
 2    12%    130.80   1220.80 : 1090.00 * .12 = 130.80
 3     8%     97.66   1318.46 : 1220.80 * .08 =  97.664
An "inflation" rate would work similarly.
Did you follow that?

Can be done this way: 1000 * 1.09 * 1.12 * 1.08 = 1318.464 ; capish?
 
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