Buena Suerte won the "Ikiskis mo" contest. As her prize, she is given the following choices: a. to receive an instant cash of P300,000 b. to receive monthly pension of P15,000 for two and a half years c. to receive a quarterly pension of P35,000 for 3 years d. to receive a yearly pension as follows: P100,000 for the first year; P50,000 each year for the next 4 years; P75,000 each year for the last 2 years. Question: Which choices you recommend to Ms. Buena Suerte? Discount rate is 12% per annum. Rank your choices.
Buena Suerte won the "Ikiskis mo" contest. As her prize, she is given the following choices: a. to receive an instant cash of P300,000 b. to receive monthly pension of P15,000 for two and a half years c. to receive a quarterly pension of P35,000 for 3 years d. to receive a yearly pension as follows: P100,000 for the first year; P50,000 each year for the next 4 years; P75,000 each year for the last 2 years. Question: Which choices you recommend to Ms. Buena Suerte? Discount rate is 12% per annum. Rank your choices.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Buena Suerte won the "Ikiskis mo" contest. As her prize, she is given the following choices:
a. to receive an instant cash of P300,000
b. to receive monthly pension of P15,000 for two and a half years
c. to receive a quarterly pension of P35,000 for 3 years
d. to receive a yearly pension as follows: P100,000 for the first year; P50,000 each year for the next 4 years; P75,000 each year for the last 2 years.
Question: Which choices you recommend to Ms. Buena Suerte? Discount rate is 12% per annum. Rank your choices.
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