If an investment of P750,000 that matures in 15 years but with certain specification that P 500000 will eam an interest of 2% annually for 5 years and the remaining amount of investment will eam 3% of interest for the remaining years but, if final agreement would render the remaining amount after 500000 be given an interest of anly half of 1% paid on a quarterly basis? What do you think will give the investor a better option? O a 3% interest paid annually for 10 years O a 3% interest paid annually for 5 years a half of 3% interest paid semi- annually O a half of 1 percent interest paid quarterly for 15 years

If an investment of P750,000 that matures in 15 years but with certain specification that P 500000 will eam an interest of 2% annually for 5 years and the remaining amount of investment will eam 3% of interest for the remaining years but, if final agreement would render the remaining amount after 500000 be given an interest of anly half of 1% paid on a quarterly basis? What do you think will give the investor a better option? O a 3% interest paid annually for 10 years O a 3% interest paid annually for 5 years a half of 3% interest paid semi- annually O a half of 1 percent interest paid quarterly for 15 years

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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