Suppose the government has promised to pay $100 billion dollars in benefits 10 years from now. Assuming an interest rate of 4%, what is the present discounted value (PDV) of the obligation? Answer in billions of dollars, rounded to two decimal places. Do not enter a '$' sign.

Suppose the government has promised to pay $100 billion dollars in benefits 10 years from now. Assuming an interest rate of 4%, what is the present discounted value (PDV) of the obligation? Answer in billions of dollars, rounded to two decimal places. Do not enter a '$' sign.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Inflation

Section: Chapter Questions

Problem 12SQ

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Suppose the government has promised to pay $100 billion dollars in benefits 10 years from now.
Assuming an interest rate of 4%, what is the present discounted value (PDV) of the obligation?
Answer in billions of dollars, rounded to two decimal places. Do not enter a '$' sign.

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