(Calculating present value) (Related to Checkpoint 5.4 on page 173) Yassir Ismail has recently bought some land from a farmer in Africa. The farmer has asked that, in addition to immediate payment, Yassir will also pay $500,000 in 30 years’ time per local customs related to ownership transfers to secure earnings for the next generation.

If the appropriate discount rate is 6 percent, what is the present value of this future payment?