please use formulas not excel and please show steps

5. Real and nominal flows Mr. Art Deco will be paid $100,000 one year hence. This is a nominal flow, which he discounts at an 8% nominal discount rate: PV=1.08100,000=$92,593 The inflation rate is 4%. Calculate the PV of Mr. Deco's payment using the equivalent real cash flow and real discount rate. (You should get exactly the same answer as he did.)