present value of amounts due assume that

Present Value of Amounts Due Assume that you are going to receive $770,000 in 10 years. The current market rate of interest is 4.5% a. Using the present value of $1 table in Exhibit 5, determine the present value of this amount compounded annually. Round to the nearest whole dollar b. Why is the present value less than the $770,000 to be received in the future? The present value is less due to inflation over the 10 years