Contemporary Engineering Economics 6th Edition by Chan Park

Exercise 5

Suppose you have the alternative of receiving either $22,000 at the end of five years or P dollars today. Currently, you have no need for money, so you could deposit the P dollars in a bank that pays 5% interest. What value of P would make you indifferent in your choice between P dollars today and the promise of $22,000 at the end of five years?