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This is for Engineering Economics. I believe I got the answer but I could be confused on the wording so please help me with this question. Please show formula.
11. At the convocation on Mercers 180th anniversary, President Underwood said Josiah Penfield donated $25,000 to help establish Mercer University. Assuming a 6% inflation/interest rate, how much did Penfield donate in todays dollars?
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Answer #1

In this question President said that he donated $25000 before 180 years when this university is established

Now the question said to find the present value of that donated amount

Amount donated * (1+i)n

= 25000*(1+0.06)180

= 25000*35896.80

= 897420000$

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