Receives amount equivalent to the payments

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Reference no: EM131302933

Three sisters inherit $1,900,000. Sister 1 receives an amount equivalent to the payments of $35,000 at the end of each year forever. Sister 2 receives $80,000 at the end of each year for the next 4 years. Sister 3 receives the rest of the $1,900,000 in three payments. The first payment, made in one year, is 1.5 times the amount of the second payment. The second payment is made in 3.5 years and is 3 times the amount of the third payment. The third payment is made in 6 years. The annual effective interest rate is 4.3% for everyone. How much does Sister 3 receive in 3.5 years?

Reference no: EM131302933

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