Activity: Same given from Day 1. Your grandparents have decided Labason, Zamboanga del Norte and they land in Titay, Zamboanga Sibugay. They A week after, two offers came. Offer 1: P500,000 down payments payment 10 years from Offer 2: P500,000 down payments 10 years. Which among the two offers sh payments will have an interest of 12% co value of the two offers.
Activity: Same given from Day 1. Your grandparents have decided Labason, Zamboanga del Norte and they land in Titay, Zamboanga Sibugay. They A week after, two offers came. Offer 1: P500,000 down payments payment 10 years from Offer 2: P500,000 down payments 10 years. Which among the two offers sh payments will have an interest of 12% co value of the two offers.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Illustrate the cash flow of the two offers using a time-diagram.
Transcribed Image Text:Activity: Same given from Day 1.
Your grandparents have decided to sell their real estate property
Labason, Zamboanga del Norte and they are planning to purchase an agriculture
land in Titay, Zamboanga Sibugay. They posted an online advertisement for this.
A week after, two offers came.
Offer 1: P500,000 down payments plus P1,500,000 lump-sum
payment 10 years from now.
Offer 2: P500,000 down payments plus P12,500 per month for
10 years.
Which among the two offers should your grandparents choose if the
payments will have an interest of 12% compounded monthly? Find the fair market
value of the two offers.
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