Suppose you have the alternative of receiving either $150,00 at the end of seven years or dollars today.

Suppose you have the alternative of receiving either $150,00 at

the end of seven years or dollars today. Currently, you have no

need for the money, so you could deposit the P dollars into a

bank account that pays 6% interest compounded annually. What

value of P would make you indifferent in your choice between P

dollars today and the promise of $150,00 at the end of seven

years?