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You just learnt that a distant relative of yours left you with $97,000 which your...

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Finance

You just learnt that a distant relative of yours left you with $97,000 which your estate planner says you will receive after 4 years. You are very excited about the prospects and decided to use the money to purchase the car of your dreams. The only caveat - it costs $104,000 today. When you visit the showroom, the salesperson tells you that if you pay cash today, you can avail a 5% discount on the car. Else, you will need to make 4 annual payments of $29,999 each. How can you use your knowledge of TMV, make a deal with the estate planner, and to purchase the car? Use the financial calculator and explain your calculations.

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