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?*
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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 present value of the 2nd offer if the focal date is at the start of the term? O A. Php 594, 897.79 B. Php 585, 945.79 O C. Php 558, 499.79 O D. Php 549, 598.79Sam is negotiating to purchase an annuity of $50 000 p.a. for 10 years. Funds currently earn 6% p.a. To sweeten the deal, the supplier offers (a) to make it an annuity due (with 10 payments in total) or (b) to add an extra payment of $10 000 to be paid immediately. Which is the better deal for Sam, if the price remains the same? Please do fast ASAP fastMr. 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 future value of the 2nd offer if the focal date is at the end of the term? A. Php 886, 307.69 B. Php 873, 086.69 O C. Php 868, 034.69 O D. Php 838, 670.69
- You have some property for sale and have received two offers. The first offer is for $89,500 today in cash. The second offer is the payment of $35,000 today and an additional guaranteed $70,000 two years from today. If the applicable discount rate is 11.5 percent, which offer should you accept and why?Type the solutionpls. A man buys a house and lot worth P1M if paid in cash. On the instalment basis he pays P500,000 down payment; P100,000 at the end of one year and P150,000 at the end of two years and the final payment at the end of four years. Find the final payment if interest is 14% per annum.Use the following information for the next 2 questions Roger buys a house costing $300,000. He puts 20% down and borrows the balance negotiating a 2-year ARM . The initial teaser rate is 3%. What is the required monthly payment in year1? Amortization is done on a 30 year basis. This is a non-carryover ARM. O $1,011.85 $1,264 O $1,590 O $1,272 O $1,342 QUESTION 38 If after two years the mortgage rate changes to 5%, what must be Roger's monthly payment for ye 3? O $1,011 $1,264 O $1,590 $1,272 O $1,342
- Mr. Ribaya recieved two offers on a lot that he wants to sell. Mr. Ocampo has offerred 50,000 pesos and a 1 million lump sum payment 5 years from now. Mr. Cruz has offered 50,000 plus 40,000 every quarter for 5 years. Compare the fair market values of the two offers if money can earn 5% compounded annually. Which offer has a higher market value?Mike Macaro is selling a piece of land. Two offers are on the table. Morton Company offered a $40,000 down payment and $35,000 a year for the next 5 years. Flynn Company offered $25,000 down and $38,000 a year for the next 5 years. Assume money can be invested at 8% compounded annually. (Use Table 13.2.)a. What is the value of the offersAssume that you are about to sell property (a vacant parcel of real estate) you own but otherwise have no use for. The net-of-sales- commission selling price for the property is $470,000. You are willing to finance this transaction over a 19-year period and have told the buyer that you expect a 9% pretax return on the transaction. The buyer has asked you for a payment schedule under several alternatives. Required: 1. What will be your periodic cash receipt, to earn a 9% return, if payments are received from the purchaser: NOTE: to answer the above questions, use the PMT function in Excel, as follows: PMT(rate,nper.pv.fv.type) where: rate is the interest rate for the loan, nper is the total number of payments, pv is the present value (ie.. the total amount that a series of future payments is worth now, also known as the principal), v is the future value (or a cash balance you want to attain after the last payment is made; if fvis omitted, it is assumed to be 0 (zero)), and type is the…
- The buyer of a certain machine is given 2 options to pay it: 1st option is paying it P405,551 down payment and P274,609 monthly for the next 6 year, starting a month from now; 2nd option is to pay it P350,000 down payment and P200,000 annually for the next 5 years. If the money is worth 21% compounded monthly, what is the present value of the 1st option?Instruction: Please calculate the correct amount and show your computation. 1. The future value of P2,500 received today and deposited at 6 percent for five years is 2. The present value of P50,000 to be received 10 years from now, assuming an opportunity cost of 9 percent is, 3. If you expect to retire in 30 years, are currently comfortable living on P 100,000 per year and expect inflation to average 3 percent over the next 30 years, what amount of annual income will you need to live at the same comfort level in 30 years? 4. The future value of a P20,000 annuity due deposited at 8 percent compounded annually for each of the next 10 years is 5. The future value of an ordinary annuity of P1,750 each year for 10 years, deposited at 5 percent is 6. How much is the present value of your investment if you invest P2,000 semi-annually at the start of every six months for a period of 4 years with interest rate of 21 percent per annum? 7. Calculate the present value of your deposits in a…You are negotiating the terms of a legal settlement. You have been given several different settlement options. Your average rate of return on the assets you currently hold is 5% and you expect to continue receiving that rate. You have a choice of receiving: • A lump sum today (t0) of $30,000 and payments of $5,000 at the end of the year for the next 7 years (total of 8 payments). Your total payout is $65,000 for the duration of the agreement. • Equal payments of $7,500 for the next 10 years at the end of each year (total of 10 payments). Your total payout is $75,000 for the duration of the agreement. • Equal payments of $13,000 starting today and continuing annually for the next 4 years (total of 5 payments). Your total payout is $65,000 for the duration of the agreement. a) What is the present value of each alternative? b) Explain why receiving money today is better than receiving the same money later. Please show Excel formulas. Thanks