You inherited money from a deceased relative. You are entitled to receive $1,463 every quarter for...

You inherited money from a deceased relative. You are entitled to receive $1,463 every quarter for the next ten years. If you could invest right now, you would be able to earn 5%, compounded quarterly. How much is this inheritance worth to you?

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jeff jeffy answered 1 year ago

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Subjects

			In $
Quarter	Amount	Discounting Factor @1.25%	Discounted Values
1	1463	0.988	1444.94	Annual Interest rate = 5% hence the Quarterly Interest rate = 5%/4 = 1.25% per Quarter
2	1463	0.975	1427.10
3	1463	0.963	1409.48
4	1463	0.952	1392.08
5	1463	0.940	1374.89	10 Years = 40 Quarters
6	1463	0.928	1357.92
7	1463	0.917	1341.16
8	1463	0.905	1324.60
9	1463	0.894	1308.24
10	1463	0.883	1292.09
11	1463	0.872	1276.14
12	1463	0.862	1260.39
13	1463	0.851	1244.83
14	1463	0.840	1229.46
15	1463	0.830	1214.28
16	1463	0.820	1199.29
17	1463	0.810	1184.48
18	1463	0.800	1169.86
19	1463	0.790	1155.42
20	1463	0.780	1141.15
21	1463	0.770	1127.06
22	1463	0.761	1113.15
23	1463	0.751	1099.41
24	1463	0.742	1085.83
25	1463	0.733	1072.43
26	1463	0.724	1059.19
27	1463	0.715	1046.11
28	1463	0.706	1033.20
29	1463	0.697	1020.44
30	1463	0.689	1007.84
31	1463	0.680	995.40
32	1463	0.672	983.11
33	1463	0.664	970.98
34	1463	0.655	958.99
35	1463	0.647	947.15
36	1463	0.639	935.46
37	1463	0.632	923.91
38	1463	0.624	912.50
39	1463	0.616	901.24