The formula to calculate Future Salary is:
\[ \text{Future Salary} = \text{Current Salary} \times (1 + \text{Average Salary Change})^{\text{Number of Years}} \]
If considering inflation:
\[ \text{Real Future Salary} = \text{Future Salary} \times (1 - \text{Average Inflation Rate})^{\text{Number of Years}} \]
The future salary is calculated based on the current salary, average annual salary increase, and the number of years. If considering inflation, the real future salary is also calculated to reflect the purchasing power in today's terms.
Let's assume the following:
Step 1: Calculate Future Salary:
\[ \text{Future Salary} = \$50,000 \times (1 + 0.05)^{10} = \$81,444.73 \]
Step 2: Calculate Real Future Salary (considering inflation):
\[ \text{Real Future Salary} = \$81,444.73 \times (1 - 0.03)^{10} = \$60,059.31 \]
Therefore, the Future Salary is $81,444.73 and the Real Future Salary (considering inflation) is $60,059.31.