**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 | $5,561.61 |

Aivan | $2,966.43 |

Visitor | $1,190.00 |

Visitor | $1,100.00 |

Visitor | $1,018.63 |

Visitor | $965.63 |

Visitor | $630.00 |

Visitor | $610.00 |

LuluLutt... | $539.43 |

Visitor | $340.00 |

Visitor | $330.00 |

Visitor | $310.00 |

Visitor | $290.00 |

Jayt | $280.00 |

Visitor | $280.00 |

Visitor | $250.00 |

Visitor | $230.00 |

Visitor | $220.00 |

Visitor | $210.00 |

Visitor | $210.00 |

**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