How would i go about calculating present value for;
A retirement benefit account that starts in 2024 with payments of 2,000 per month for a 29.75 year duration with an average annual CPI increase of 2.62%?
How do i determine the present value of this amount as of 2015?
Would you simply back out the pv as of 2024 by x/(rate)^t)= rate as of today?
Also is there a proof calculation for the present values as of 2024 and 2015?
Thanks!
A retirement benefit account that starts in 2024 with payments of 2,000 per month for a 29.75 year duration with an average annual CPI increase of 2.62%?
How do i determine the present value of this amount as of 2015?
Would you simply back out the pv as of 2024 by x/(rate)^t)= rate as of today?
Also is there a proof calculation for the present values as of 2024 and 2015?
Thanks!