So, running these numbers have me confused:

A) $10000 invested per year for 10 years at a return rate of 7% nets $147,835 at the end of 10 years.

B) $10000 invested per year for 10 years at an adjusted for inflation rate of 4% nets $124,863.51 at the end of 10 years.

C) The confusing part is that if you take the present value of $147,835 at the end of 10 years at a discount rate of 3% (inflation) you get $110,003.12

Why is the result from C different from B? Isn't B the theoretical present value already since you left off 3%?

[Edit] - I did some searching and I didn't realize that it wasn't as simple as just subtracting the inflation rate from the return rate (though I still can't grasp why). But even so, if you rerun "A" with 3.88 instead (the inflation adjusted return), you get $124,027.82, which is still different from "C". Why the disparities?