Your grandparents have decided to sell their real estate property in the Province of lloilo and they are planning to buy a property in lloilo City. They posted an online advertisement for this. Two offers came: • Offer 1 : P500,000 down payment plus P1,500,000 lump-sum payment 10 years from now Offer 2 : P500,000 down payment plus P12,500 per month for 10 years Which among the 2 offers should your grandparents choose if the payment will have an interest of 12% compounded monthly? Find the fair market value of the two offers.

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A:

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