Question
You are going to receive at the end of every year, for the next 50 years, a nominal fixed payment of $1,000. The present value
You are going to receive at the end of every year, for the next 50 years, a nominal fixed payment of $1,000. The present value of this nominal stream of cash payment is $19,047. Considering that the inflation rate is 1%, what is the PV of the corresponding real cash payments discounted at the real interest rate?
A. $100,000
B. $20,320
C. $19,047
D. $18,589
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Financial Accounting in an Economic Context
Authors: Jamie Pratt
8th Edition
9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292
