What is the present value of 200000 earned 65 years from now

What is the present value of $200,000 earned 65 years from now when the discount rate is 5%?

Solution

Present Value = Future Value/(1+discount rate)^time periods

Given:

Future Value = $200000

Discount rate = 5%

Time periods = 65 years

So, the present value = 200000/(1+0.05)^65 = $8389.30