Present value. You are an entrepreneur at heart and want to start your own business. However, in order to do so, you’re going to need funding.

Fortunately, you have a wealthy aunt who is open to the possibility of lending you money to start your business. She is willing to provide you but wants the following payment schedule in return over the next 20 years. You first must pay her $1,200 at the end of each quarter, starting at the end of the one quarter from now, for the first five years. Then pay her $3,000 at the end of each quarter for the following five years. Finally, you pay her $10,000 at the end of each quarter for the following ten years. Given an interest rate of 6%, compounded quarterly, how much would you classify her investment as being worth in today’s money?