Suppose V, is the value of an asset at a time point that is n periods after the reference point. If V8=660 and the discount rate is 3% per period, then V4-- [Hints/Example) Example: If V.11=670 and the discount rate is 5% per period, then V.18=- Solution: For any n and m. Vm=V*(1+r)-n. Therefore, in this question V-18-V-11*(1+5%)(-18)-(-11)=V. 29990901*1.05-7=670*1.05-7-476.16. Remark: Time point t=-18 is earlier than t=-11. As long as r>0, the value of the asset should be smaller at t=-18 than at t=-11.