David needs to pay $66,276 each year for medical reason, and he invests in stocks which gives him 7% return per year. What is the amount of money he needs today (present value) for the medical expense of the next 7 years? The expected inflation is 4%.

Answer rating: 100% (QA)

To calculate the present value of Davids future medical expenses we need to take into account both t... View the full answer