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You inherit $432,000. You can receive the $432,000 in one lump sum payment today or, alternatively, receive two amounts: $232,000 in 9 months and $220,000
You inherit $432,000. You can receive the $432,000 in one lump sum payment today or, alternatively, receive two amounts: $232,000 in 9 months and $220,000 in 21 months from today. If you can earn 7.0% per annum compounding monthly on your monies, what is the value of the option to receive two payments
(in present day value)? (to nearest whole dollar,; dont use $ sign or commas)
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