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