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?Answer

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

(c)Which offer is better?Answer

Ms. Perez'

Mr. Castro's