Problem:
According to the settlement, Jolene received $20,000 today and will further receive weekly payments of $500 per week for the 10 years (i.e., 52 * 10 = 520 weeks). The first of the weekly payments will be made exactly 12 weeks from now.
Requirement:
Question: If you use the discount rate of 3.64% APR, compounded weekly that the lawyers agreed to in the settlement negotiations, what is the present value of the settlement?
Note: Provide support for your rationale.