Answer:
$3,438,289
Explanation:
First we need to calculate the future value of investment after 10 years.
A fix payment for indefinite period of time is a perpetuity payment. It will be value using perpetuity formula
Value of investment after 10 years = Yearly cash flow / interest rate
Value of investment after 10 years = $230,000 / 4.5% = $5,111,111
Now we need to discount this value to calculate the amount of deposit required today.
Present value = Future value x ( 1 + r )^-n
Today's value = $5,111,111 x ( 1 + 4.5% )^-9 = $3,438,289
