Question: PLEASE! Spreadsheet Analytics II. a. Your long-lost rich third cousin has unexpectedly passed away at the age of 103. In her will, she arranged for
PLEASE! Spreadsheet Analytics II. a. Your long-lost rich third cousin has unexpectedly passed away at the age of 103. In her will, she arranged for you to receive a payment of $10,000 at the end of each year for the next twelve years. But the settlement lawyer handling her estate has instead offered you an immediate one-time payment of $100,000. Is that a fair offer if the current interest rate is 4%? Perform a financial calculation to answer the question. Show your work. b. Interestingly, after reading the fine print in your cousins will, you noticed it states that the payment in the first year will be $10,000, but will be increased by $500 every year (that is, 10500 for next year, 11000 for the year after that, and so on). According to present value based upon the same interest rate as part a, explain whether you should accept the offer from the settlement attorney. Show your calculation of present value.
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