**Question 577** inflation, real and nominal returns and cash flows

What is the present value of a **real** payment of $500 in 2 years? The **nominal** discount rate is 7% pa and the inflation rate is 4% pa.

Scores | |

keithphw | $6,001.61 |

Yizhou | $489.18 |

Visitor | $462.43 |

Visitor | $370.00 |

allen | $340.00 |

Donnal | $190.00 |

Visitor | $160.00 |

Visitor | $150.00 |

Visitor | $119.09 |

Visitor | $110.00 |

Visitor | $100.00 |

Visitor | $90.00 |

Visitor | $60.00 |

Visitor | $60.00 |

Visitor | $56.09 |

Visitor | $50.00 |

Koushik ... | $43.45 |

Visitor | $40.09 |

Visitor | $40.00 |

Joe figh... | $40.00 |

**Question 577** inflation, real and nominal returns and cash flows

What is the present value of a **real** payment of $500 in 2 years? The **nominal** discount rate is 7% pa and the inflation rate is 4% pa.

Copyright © 2014 Keith Woodward