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2018-12-07
you are going to receive at the end of every year, for the next 50 years, a nominal fixed payment of $1000. The present value of this nominal stream of cash payment is $19047. Considering that the inflation rate is 1%, what is the PV of the corresponding real cash payments discounted at the real interest rate?
A. $100,000
B. $20,320
C. $19,047
D. $18,589
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