What Is the Current Economic Value of an Inheritance That

question 112

Short Answer

What is the current economic value of an inheritance that will pay $2,500 to the beneficiary at the beginning of every three months for 20 years starting when the beneficiary reaches 21 years of age, 5¼ years from now? Assume that money can earn 6% compounded monthly.

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Definitions:

Legal Limits

The boundaries established by law, beyond which actions are deemed illegal or unauthorized.

Thoreau

Henry David Thoreau, an American essayist, poet, and philosopher known for his writings on natural history and philosophy, including "Walden."

Declare Laws

The act of formally stating or enacting legal rules and regulations by a governing body or authority.

Unconstitutional

Something that contradicts or violates the principles and rules set forth in a country's constitution.