A plaintiff in a high profile legal suit was offered the following out of court settlement: We the defendant will pay the lump sum of $185 to the plaintiff in exactly 3 years. Or, alternatively, we will negotiate a lump sum payment today. According to time value of money, what lump sum amount today will have the same present value as the offered settlement if the interest rate of 4.7%?

Place your answer in dollars and cents. Do not include a dollar sign or a comma.

Work your analysis out with at least 4 decimal places of accuracy.

Answer rating: 100% (QA)

PV FV 1it where i is equal to the discount rate int... View the full answer