You will receive an inheritance of 500000 in 20 years on your 40th birthday? What is the value of the inheritance today if the discount rate is 10%?

This problem is a present worth problem, where you need to calculate its present amount. this can be solved using the formula:

P = F (1+i) ^ (-n)

where p is the present value

f is the future value

i is the interest rate

n is the number of years

substituting the given to the formula

P = (500000) (1 + 0.1) ^ (-20)

P = 74,321 is current value of the inheritance that is 500,000 that 20 years from now