Dispute over an inheritance

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You are involved in a dispute over an inheritance. You believe you are entitled to $280,000 upon turning 21 years old. You will turn 21 in three years' time. Your older brother argues that you are actually entitled to nothing. You think that you have a good chance of prevailing and you suspect your brother knows that too. That is why he is offering to pay you $220,000 right now if you end the dispute and withdraw any further claim on the inheritance. If interest rates are 5 percent p.a., and assuming you would receive the full amount if you press on with the dispute, is your brother making a fair offer?

Reference no: EM132544542

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