. If the real rate of interest is 1.75% and if the expected inflation rate is 6.85%, what is the present value of $50,000 to be received exactly 8 years from today? . Kiyomi wants to buy a new car. The dealership offers her a choice of paying $600 per month for 5 years (with the first payment due exactly 13 months from today) or paying $27,000.00 today (which Kiyomi will borrow from her bank). What annual interest rate would make Kiyomi indifferent between these two options?