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23 May, 19:35

Your grandmother left you $90,000 that you'll receive when you turn 40 in 18 years. Since you'd rather have some money now, you want to sell your claim to the inheritance. Attempt 1/10 for 10 pts. Part 1 What is the minimum amount that you should sell your claim for now if the interest rate is 5%

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  1. 23 May, 20:41
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    The minimum amount to sell the claim is = $37,396.85

    Explanation:

    The minimum amount is the present value of the the expected future sum discounted at the rate of 5%.

    PV = FV * (1+r) ^ (-n)

    FV - 90,000, r - 5%, n - 18

    = 90,000 * (1.05) ^ (-18)

    = 37,396.85

    The minimum amount to sell the claim is = $37,396.85
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Home » Business » Your grandmother left you $90,000 that you'll receive when you turn 40 in 18 years. Since you'd rather have some money now, you want to sell your claim to the inheritance. Attempt 1/10 for 10 pts.
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