Liam was offered by AMS bank and TML bank with the following conditions: AMS BANK offers him Php 88000 at the end of 2 years plus Php 20000 at the end of 4 years while TML bank offers Php 24000 at the end of each semi-annual for the next 4 years. Assume that the money is worth 5.9% compounded annually. What is the fair market value of each offer? Round off your answers in 2 decimal places. AMS Bank's offer Php 88000 at the end of 2 years Php 20000 at the end of 4 years Next TML Bank's offer Php 24000 semi annually for the next 4 years The present value of 88000 for 2 years from now is: Php The present value of 20000 for 4 years from now is: Php Fair Market Value (FMV) of AMS Bank Php Fair Market Value (FMV) of TML offer Php
Liam was offered by AMS bank and TML bank with the following conditions: AMS BANK offers him Php 88000 at the end of 2 years plus Php 20000 at the end of 4 years while TML bank offers Php 24000 at the end of each semi-annual for the next 4 years. Assume that the money is worth 5.9% compounded annually. What is the fair market value of each offer? Round off your answers in 2 decimal places. AMS Bank's offer Php 88000 at the end of 2 years Php 20000 at the end of 4 years Next TML Bank's offer Php 24000 semi annually for the next 4 years The present value of 88000 for 2 years from now is: Php The present value of 20000 for 4 years from now is: Php Fair Market Value (FMV) of AMS Bank Php Fair Market Value (FMV) of TML offer Php
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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Transcribed Image Text:Liam was offered by AMS bank and TML bank with the following conditions:
AMS BANK offers him Php 88000 at the end of 2 years plus Php 20000 at the end of 4 years while TML bank
offers Php 24000 at the end of each semi-annual for the next 4 years. Assume that the money is worth 5.9%
compounded annually. What is the fair market value of each offer?? Round off your answers in 2 decimal
places.
AMS Bank's offer
Php 88000 at the end of 2 years
Php 20000 at the end of 4 years
Next
TML Bank's offer
Php 24000 semi annually for the next 4 years
The present value of 88000 for 2 years from now is:
Php
The present value of 20000 for 4 years from now is:
Php
Fair Market Value (FMV) of AMS Bank
Php
Fair Market Value (FMV) of TML offer
Php
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