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What is the present value today of your projected monthly retirement check of $2,000 (your estimate which you will receive when you reach 65)? You turn 65 in 25 years and you think inflation will be 6 percent a year between now and your retirement.

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What is the present value today of your projected monthly retirement check of $2,000 (your estimate which you will receive when you reach 65)? You turn 65 in 25 years and you think inflation will be 6 percent a year between now and your retirement.

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Computations shown and solved for the student.

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Hello!
The formula for the present value of payment that will be received in the future is:

PV = Payment/(1 + r)^n
where r is the discount ...

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