The relevant nominal discount rate is 63 percent and the


You have won a contest and will receive $2,500 a year in real terms for the next 3 years. Each payment will be received at the end of the period with the first payment occurring one year from today. The relevant nominal discount rate is 6.3 percent and the inflation rate is 4.5 percent. What are your winnings worth today?

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Finance Basics: The relevant nominal discount rate is 63 percent and the
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