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Your uncle died last year and left you money in his will. You are to receive $400,000 in two years (time 2 ) and $1,000,000

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Your uncle died last year and left you money in his will. You are to receive $400,000 in two years (time 2 ) and $1,000,000 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 7% (compounded annually)? (b) If you invest the money when you receive it, how much will it grow to 20 years from today (i.e., in time 20 ) if you earn 7% compounded annually? Your uncle died last year and left you money in his will. You are to receive $400,000 in two years (time 2 ) and $1,000,000 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 7% (compounded annually)? (b) If you invest the money when you receive it, how much will it grow to 20 years from today (i.e., in time 20 ) if you earn 7% compounded annually

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