equivalent of $15000 in 5 years based on inflation forecast

Question

Inflation is forecast at 2% for the next 2 years and 3% thereafter. If you expect to receive $15,000 in 5 years' time, what is its equivalent in todays dollars?

Answer 1

Today*(1+2%)(1+2%)(1+3%)(1+3%)(1+3%)= 15,000 or today = 15,000/(((1.02)²)(1.03)³)

= 15,000/1.13687 =13,194.087