Mr. Limpiado received two offers on a lot that he wants to sell. First Offer: Php 20,000 down payment and a Php 800,000 lump sum payment 6 years from now. Second Offer: Php 25,000 down payment plus Php 30,000 every quarter for 6 years. Both money earns at 6.5% compounded annually. What is the fair market value of the 2nd offer if the focal date is at the end of the term?* O A. Php 911, 307.67 O B. Php 904, 513.24 C. Php 898, 086.67 D. Php 893, 034.69

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 12E
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Mr. Limpiado received two offers on
a lot that he wants to sell. First Offer:
Php 20,000 down payment and a
Php 800,000 lump sum payment 6
years from now. Second Offer: Php
25,000 down payment plus Php
30,000 every quarter for 6 years.
Both money earns at 6.5%
compounded annually. What is the
fair market value of the 2nd offer if
the focal date is at the end of the
term?*
O A. Php 911, 307.67
B. Php 904, 513.24
O C. Php 898, 086.67
O D. Php 893, 034.69
Transcribed Image Text:Mr. Limpiado received two offers on a lot that he wants to sell. First Offer: Php 20,000 down payment and a Php 800,000 lump sum payment 6 years from now. Second Offer: Php 25,000 down payment plus Php 30,000 every quarter for 6 years. Both money earns at 6.5% compounded annually. What is the fair market value of the 2nd offer if the focal date is at the end of the term?* O A. Php 911, 307.67 B. Php 904, 513.24 O C. Php 898, 086.67 O D. Php 893, 034.69
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