How much would $20,000 due in 50 years be worth today if the discount rate were 7.5%?

$438.03

$461.08

$485.35

$510.89

$537.78

$537.78

Explanation:

In order to find the present value of a future payment we discount it using a discount rate. The formula for that is

Present value = Future value/(1+Rate)^Number of years.

In this case we know the future value is $20,000, the discount rate is 7.5% and the number of years are 50, so we just input these numbers in the formula to find the present value or worth today.

Present value = 20,000/(1+0.075)^50

=537.78

$20,000 due in 50 years would be worth $537.78 today if discounted by 7.5%

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi