Your elderly uncle has four children, and plans to divide his earthly possessions equally between them when he dies. He has special directio ns for the youngest child, who has a communication disorder. Although this son has a steady job, he is unable to save money or plan past the next paycheck.
Your uncle wishes to give this son his full inheritance, but pay it to him monthly, in a con stant p ayment, for as long as the son lives. He has told you privately that he hopes that payment can be at least $1000/month. Assuming long-term investments can safely earn 4% compounded daily, how much must your uncle’s total estate be worth to fulfill his hope?