Mr.Art Deco will be paid $100,000 one year hence.This is a nominal flow,which he discounts...

Mr.Art Deco will be paid $100,000 one year hence.This is a nominal flow,which he discounts at an 8% nominal discount rate:

The inflation rate is 4%.

Calculate the PV of Mr. Deco’s payment using the equivalent real cash flow and real discount rate. (You should get exactly the same answer as he did.)