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Q) Your uncle died last year and left you money in his will. You are to receive $100,000 in two years (time 2) and $200,000
Q) Your uncle died last year and left you money in his will. You are to receive $100,000 in two years (time 2) and $200,000 ten years from today (i.e., in time 10). (a) What is the value of the inheritance today (in time 0) if the appropriate discount rate is 4% and you compound annually? (b) If you invest the money when you receive it, how much will it grow to 30 years from today (i.e., in time 30) if you earn 4% each year?
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