(For no. 4-5) Problem 2: Your uncle sold his rice field land in Kabasalan, Zamboanga Sibugay, and is planning to purchase residential land in Titay, Zamboanga Sibugay. He utilized his media account in selling the land and was able to receive two compelling offers: Offer 1: P1,000,000 down payments plus P2,500,000 lump-sum payment 5 years from now. Offer 2: P1,000,000 down payments plus P40,000 per month for 5 years Which among the two offers should your uncle pick if the payments will have an interest of 12% compounded monthly? Find the fair market value of the two offers. 4. What is the future value of offer 1? a. P1 676 234.17 b. P2 676 234.17 c. P3 676 234.17 d. P4 676 234.17 5. What is the future value of offer 2? a. P1 204 040.2 b. P2 204 040.2 c. P3 204 040.2 d. P4 204 040.2

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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a. P406 63
2. What is the present value of offer 2?
a. P108 693.21
d. P408 693.21
b. P208 693.2
c. P308 693.21
3. Which of the two offers advantageous for your grandparents using the
present value of the two offers?
a. Offer 1
b. Offer 2
c. both offer 1 and offer 2 d. none of the above
(For no. 4-5) Problem 2:
Your uncle sold his rice field land in Kabasalan, Zamboanga Sibugay, and
is planning to purchase residential land in Titay, Zamboanga Sibugay. He utilized
his media account in selling the land and was able to receive two compelling
offers:
Offer 1: P1,000,000 down payments plus P2,500,000 lump-sum payment 5
years from now.
Offer 2: P1,000,000 down payments plus P40,000 per month for 5 years
Which among the two offers should your uncle pick if the payments will
have an interest of 12% compounded monthly? Find the fair market value of the
two offers.
4. What is the future value of offer 1?
a. P1 676 234.17
b. P2 676 234.17 c. P3 676 234.17
d. P4 676 234.17
5. What is the future value of offer 2?
a. P1 204 040.2 b. P2 204 040.2 c. P3 204 040.2
d. P4 204 040.2
Transcribed Image Text:a. P406 63 2. What is the present value of offer 2? a. P108 693.21 d. P408 693.21 b. P208 693.2 c. P308 693.21 3. Which of the two offers advantageous for your grandparents using the present value of the two offers? a. Offer 1 b. Offer 2 c. both offer 1 and offer 2 d. none of the above (For no. 4-5) Problem 2: Your uncle sold his rice field land in Kabasalan, Zamboanga Sibugay, and is planning to purchase residential land in Titay, Zamboanga Sibugay. He utilized his media account in selling the land and was able to receive two compelling offers: Offer 1: P1,000,000 down payments plus P2,500,000 lump-sum payment 5 years from now. Offer 2: P1,000,000 down payments plus P40,000 per month for 5 years Which among the two offers should your uncle pick if the payments will have an interest of 12% compounded monthly? Find the fair market value of the two offers. 4. What is the future value of offer 1? a. P1 676 234.17 b. P2 676 234.17 c. P3 676 234.17 d. P4 676 234.17 5. What is the future value of offer 2? a. P1 204 040.2 b. P2 204 040.2 c. P3 204 040.2 d. P4 204 040.2
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