Question
You inherit $450,000. You can receive the $450,000 in one lump sum payment today or, alternatively, receive two amounts: $250,000 in 9 months and $220,000
You inherit $450,000. You can receive the $450,000 in one lump sum payment today or, alternatively, receive two amounts: $250,000 in 9 months and $220,000 in 21 months from today. If you can earn 5.9% per annum compounding monthly on your monies, what is the value of the option to receive two payments (in present day value)?
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Financial Advisor Careers With Character
Authors: Sherry Bonnice
1st Edition
1422227553, 9781422227558
