Using 55 as the rate how much should you give him today


Your friend has a lawsuit settlement that promises to give him $50000.00 twenty five years from now. However, he needs the money today, and asks you how much you can give him. Long term interest rates seem to be running at about 5.5%, and as you know, due to inflation, the money will not be worth as much in terms of what it can buy, when he pays you back. Using 5.5% as the rate, how much should you give him today? Assume annual compounding.

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Finance Basics: Using 55 as the rate how much should you give him today
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