Question
A condo owner received 2 offers to sell their condo. Mrs. A is offering a $49500 down payment plus $143200 payable in 3 years. Mr.
A condo owner received 2 offers to sell their condo. Mrs. A is offering a $49500 down payment plus $143200 payable in 3 years. Mr. B's offer is $34000 down plus two $78800 payments due 2 and 3 years from now. Money can earn 8% simple interest. Find
- The value of Mrs. A's payment in 3 years in terms of dollars today,
- The total value of Mrs. A's offer today,
- The value of Mr. B's payment in 2 years in terms of dollars today,
- The value of Mr. B's payment in 3 years in terms of dollars today,
- The total value of Mr. B's offer today.
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
8th edition
978-1118953815, 978-1118953907
