Find how much your inheritance is worth in todays value


Problem

You have inherited a rich Aunt who lived in South Africa for the past 30 years. however, your has put some terms for a collection of the inheritance. These terms are the following.

• for the first 10 years you will collect a constant amount of $1200 at the end of every month.
• Therefore, you will collect a constant amount of $3000 at the end of each month forever.

The current interest rate in the market is 6%

Task: Find how much your inheritance is worth in today's value.

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Corporate Finance: Find how much your inheritance is worth in todays value
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