Question
You have just learned that you are a beneficiary in the will of your late Aunt Susan. The executrix of her estate has given you
You have just learned that you are a beneficiary in the will of your late Aunt Susan. The executrix of her estate has given you three options as to how you may receive your inheritance. You must use spreadsheet functions or a financial calculator to solve this question. Required: 1-a. Calculate the present value for the following assuming that the money can be invested at 13% percent. (Round final answers to the nearest dollar amount.) Present Value a. You may receive $74,000 immediately. $ b. You may receive $97,000 at the end of fifteen years. $ c. You may receive $31,000 at the end of each year for fifteen years (a total of $465,000). $ 1-b. If you can invest money at a 13% return, which option would you prefer? Option a Option b Option c
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