**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 | $5,781.61 |

oosterhoff | $1,667.00 |

Visitor | $464.00 |

Visitor | $450.00 |

Visitor | $380.00 |

Visitor | $327.00 |

Visitor | $320.00 |

allen | $320.00 |

Visitor | $310.00 |

Visitor | $300.00 |

Visitor | $289.43 |

Visitor | $280.00 |

Visitor | $280.00 |

Apo | $270.00 |

Visitor | $260.00 |

Visitor | $260.00 |

fktragedy | $250.00 |

Visitor | $238.61 |

Visitor | $230.00 |

Visitor | $230.00 |

**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