You are going to be
given $45,000 in 7 years. Assuming an interest rate of 2.5%, what is the
present value of this amount?

FV=$45000 n=7yrs r=2.5%

FV=PV*(1+r)^n

45000=PV(1.025)^7

45000=PV*1.188685

PV=45000/1.188685

PV=37856.95

PV=$37857