1. Kat received two offers for investments. The first one is P150,000 every year for 5 years at 9%
compounded annually. The other investmen scheme is P12,000 per month for 5 years with the same
interest rate. Which fair market value between these offers is preferable?
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Answer:
Question:
1. Kat received two offers for investments. The first one is P150,000 every year for 5 years at 9% compounded annually. The other investmen scheme is P12,000 per month for 5 years with the same interest rate. Which fair market value between these offers is preferable?
Answer:
Given: statement
Find: Solve
Solution:
First
A = 150000 (1 + )⁵
A = 230793.59
Second
A = 12000 (1 + ) ⁵
A = 18463.48 monthly
A = 221561.84 yearly
Hence, first inverses will fair market value than second