If you can make 6.3 percent on the investments, the minimum amount you should take today in exchange for this settlement is $198,871. (Approx).
<h3>What is the present value?</h3>
The current value of a future sum of money or stream of cash flows, assuming a certain rate of return, is known as present value (PV).
In the given case, there is a need to find out the present value of $211,400.
<u>Computation</u>:
According to the given information,
Present value = $211,400 × 1/(1 + r)n
Present value =$211,400× 1/1.063
Present value =$211,400× 0.940734
Present value =$198,871(Approx).
Learn more about the present value, refer to:
brainly.com/question/17322936
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