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The answer must include PAINFG and the cash flow diagrams.

P= Present value (this value is not used in this problem) A = Annuity; this is the value that is given in this problem i = Effective interest rate n = Number of payments F = Future value; this is the value that we want to find in this problem (F= ?) G = Gradient value (this value is not used in this problem)

1. If a $200,000 building Jensen owns in Cleveland is expected to increase in value by 2% per year, but inflation is 3%/year, what is the next present value of the building in 10 years?