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 start of the term?*

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 start of the
term? *
O A. Php 619, 897.79
O B. Php 610, 945.79
O C. Php 583, 499.79
O D. Php 574, 598.79
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 start of the term? * O A. Php 619, 897.79 O B. Php 610, 945.79 O C. Php 583, 499.79 O D. Php 574, 598.79
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 start of the
term? *
O A. Php 604, 627.30
O B. Php 596, 248.30
O C. Php 568, 267.30
O D. Php 542, 478.30
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 1st offer if the focal date is at the start of the term? * O A. Php 604, 627.30 O B. Php 596, 248.30 O C. Php 568, 267.30 O D. Php 542, 478.30
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