Nathan Would Have to Wait Until He Was 35 to Receive

question 4

Essay

Nathan would have to wait until he was 35 to receive his inheritance, which was entirely too long in light of his impressive shopping list. He had almost given up hope when he saw an interesting offer one afternoon while watching television. In the advertisement, a company expressed a willingness to give him cash now if he would sign over his inheritance 11 years from now. If they use a 15% interest rate, what percentage of his inheritance will Nathan receive today?

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Definitions:

Incidental Beneficiary

A third party who benefits from a contract incidentally but has no legal right to enforce the contract or claim damages.

Creditor Beneficiary

A third party who benefits from a contract in which the promisor agrees to pay the promisee’s debt.

Public Policy

General principles or ideologies that guide the creation of laws and the operation of government, reflecting the societal values and norms.

Assignment of Rights

The transfer of a party's rights under a contract to another party, allowing them to benefit from those rights.