What is the market value of Ms Perez offer

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Question - Mr. Santos received two offers on a lot that he wants to sell. Ms. Perez offered Php 50,000.00 down payment and a lump sum of Php 1,000,000.00 after 5 years. Mr. Castro offered Php 50,000.00 down payment and Php 40,000.00 every quarter for 5 years. Compare the market values of the two offer if the money can earn 5% compounded annually.

(a) What is the market value of Ms. Perez' offer?

(b) What is the market value of Mr. Castro's offer?

(c) Which offer is better?

Reference no: EM132661574

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