Mr. Limpiado received two offers ona lot that he wants to sell. First Offer:Php 20,000 down payment and aPhp 800,000 lump sum payment 6years from now. Second Offer: Php25,000 down payment plus Php30,000 every quarter for 6 years.Both money earns at 6.5%compounded annually. What is thefair market value of the 1st offer ifthe focal date is at the end of theterm?*O A. Php 891, 228.85O B. Php 882, 219.85C. Php 829, 182.85D. Php 841, 289.85

Given, The down payment for first offer is Php 20,000. Lumpsum payment Php 800,000. term is 6 years…

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

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

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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Concept explainers

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.

Question

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 1st offer if
the focal date is at the end of the
term?*
O A. Php 891, 228.85
O B. Php 882, 219.85
C. Php 829, 182.85
D. Php 841, 289.85

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