Answer:
PV= $537.78
Explanation:
Giving the following information:
Future Value (FV)= $20,000
Number of periods (n)= 50 years
Discount rate (i)= 7.5% = 0.075
To calculate the present value, we need to use the following formula:
PV= FV / (1+i)^n
PV= 20,000 / (1.075^50)
PV= $537.78
