1. Which Offer has a better Fair Market Value? Company A offers P150,000 at the end of 3 years plus P300,000 at the end of 5 years. Company B offers P25,000 at the end of each quarter for the next 5 years. Assume that money is worth 8% compounded annually. COMPANY A P150,000 at the end of 3 years P300,000 at the end of 5 years COMPANY B P25,000 at the end of each quarter for 5 years
1. Which Offer has a better Fair Market Value? Company A offers P150,000 at the end of 3 years plus P300,000 at the end of 5 years. Company B offers P25,000 at the end of each quarter for the next 5 years. Assume that money is worth 8% compounded annually. COMPANY A P150,000 at the end of 3 years P300,000 at the end of 5 years COMPANY B P25,000 at the end of each quarter for 5 years
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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1. Which Offer has a better Fair Market Value?
Company A offers P150,000 at the end of 3 years plus P300,000 at the end
of 5 years. Company B offers P25,000 at the end of each quarter for the
next 5 years. Assume that money is worth 8% compounded annually.
COMPANY A
P150,000 at the end of 3 years
P300,000 at the end of 5 years
COMPANY B
P25,000 at the end of each
quarter for 5 years
2. ABC bank pays interest at the rate of 2% compounded quarterly. How
much will Ken have in the bank at the end of 5 years if he deposits
P3,000 every month?
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