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Your deceased great-Uncle left you an amount of money ($10,500) to be paid out yearly in your will. What is the value of the inheritance
Your deceased great-Uncle left you an amount of money ($10,500) to be paid out yearly in your will. What is the value of the inheritance today if:
- $10,500 is distributed as a 30-year annuity with a 7% discount rate
- $10,500 is distributed as a perpetuity with a 7% discount rate
- $10,500 is distributed as a growing perpetuity with a 7% discount rate and a 5% annual growth rate
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