Direction : Read , analyze , and solve the following worded problem involving annuities . Show your complete solutions. I already provided the answer I just need the SOLUTION. Mr. Santos received two offers on a lot that he wants to sell. Mr. Reyes has offered 50 000.00 Php and one million pesos lump sum payment for 5 years from now. Mr. Cruz has offered 50 000.00 Php plus 40 000.00 Php every quarter for 5 years . Compare the fair market values of the two offers if the money can earn 5% compounded annually. Which offer has a higher market value? Answer: Mr. Reyes' offer has a higher market value of 833 526.20 Php compared to Mr. Cruz offer of 755 572.70 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 23E
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Direction : Read , analyze , and solve the following worded problem involving annuities . Show your complete solutions. I already provided the answer I just need the SOLUTION.

Mr. Santos received two offers on a lot that he wants to sell. Mr. Reyes has offered 50 000.00 Php and one million pesos lump sum payment for 5 years from now. Mr. Cruz has offered 50 000.00 Php plus 40 000.00 Php every quarter for 5 years . Compare the fair market values of the two offers if the money can earn 5% compounded annually. Which offer has a higher market value?

Answer: Mr. Reyes' offer has a higher market value of 833 526.20 Php compared to Mr. Cruz offer of 755 572.70 Php.

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