Question: 16. Your recently departed rich, eccentric uncle has left for you in his will a large sum of money. Unfortunately, rather than give you

16. Your recently departed rich, eccentric uncle has left for you in

16. Your recently departed rich, eccentric uncle has left for you in his will a large sum of money. Unfortunately, rather than give you this sum of money immediately, he has instructed the executor of the will to pay you $10,000 in one year. This payment is to grow by 9% each year and to be made each year forever. If the appropriate discount rate is 10%, how much have you actually inherited? A) $100,000 B) $1,000,000 $11,111.11 D) $9,090.90 E) $10,000,000

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