Present value of single sum problem You are going to be give

Present value of single sum problem.

You are going to be given $79,000 in 15 years. Assuming an inflation rate of 2.4%, what is the present value of this amount?

Solution

Future value = 79000

Time period = 15 years

Rate= 2.4%

Present Value PV = (79000)/(1.024)¹⁵ = 55351.29