Answer:
$74,321.81
Explanation:
The compounded interest equation is:
[tex]N = P*(1+i)^n[/tex]
Where 'P' is the present value, 'i' is the discount rate, 'n' is the number of periods in years and 'N' is the future value.
If N = $500,000, n = 20 and i = 10%, the present value is:
[tex]\$500,000 = P*(1+0.10)^{20}\\P=\frac{\$500,000}{(1+0.10)^{20}}\\P=\$74,321.81[/tex]
The value of the inheritance today is $74,321.81
