Question
Omar wants to make a gift of $10,000 in todays dollars to his parents at the end of each of the next 10 years. If
Omar wants to make a gift of $10,000 in todays dollars to his parents at the end of each of the next 10 years. If the annual rate of return is 8% and inflation is 3%, what is the value of the funds he must have in hand today to meet this need for the 10-year period? a.$81,541 b.$77,766 c.$76,251 d.$82,713 PLEASE NOTE!!! - *** B is the correct answer, but I need help inputting this in my calculator...
I am doing 10,000 = PV, 10 = N, 4.8543 = I/Y (adjusted for inflation) ... what am I doing wrong?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
11th Canadian Edition
1259024970, 978-1259265921
