Problem:
You purchased an investment which will pay you $8,000, in real dollars, a year for the next three years. Each payment will be received at the end of the period with the first payment occurring one year from today. The nominal discount rate is 7.5 percent and the inflation rate is 2.9 percent.
Required:
Question: What is the present value of these payments?
Note: Please show guided help with steps and answer.