month. If the bank pays 0.250% compounded monthly, how much will her money be at the end of 6 years? 3. Paolo borrowed P100,000. He agrees to pay the principal plus interest by paying an equal amount of money each year for 3 years. What should be his annual payment if interest is 8% compounded annually? 4. 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. COMPANYA COMPANY B P150,000 at the end of 3 years P25,000 at the end of each P300,000 at the end of 5 years quarter for 5 years 5. Kat received two offers for investments. The first one is P150,000 every year for 5 years at 9% compounded annually. The other investment scheme is P12,000 per month for 5 years with the same interest rate. Which fair market value between these offers is preferable?

month. If the bank pays 0.250% compounded monthly, how much will her money be at the end of 6 years? 3. Paolo borrowed P100,000. He agrees to pay the principal plus interest by paying an equal amount of money each year for 3 years. What should be his annual payment if interest is 8% compounded annually? 4. 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. COMPANYA COMPANY B P150,000 at the end of 3 years P25,000 at the end of each P300,000 at the end of 5 years quarter for 5 years 5. Kat received two offers for investments. The first one is P150,000 every year for 5 years at 9% compounded annually. The other investment scheme is P12,000 per month for 5 years with the same interest rate. Which fair market value between these offers is preferable?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 2STP

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