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Please show work to obtain answer, answer provided. 14. Sagheer received two offers for his property that he is selling. Offer 1 consists of $700
Please show work to obtain answer, answer provided.
14. Sagheer received two offers for his property that he is selling. Offer 1 consists of $700 000 immediately and offer 2 consists of $500 000 now and $110,000 per annum for the next 2 years. If money earns 6% compounded semi-annually, which offer has a better economic advantage and by how much. Assume no inflation or discount? A) Offer 1 is better by -$1400 B) Offer 2 is better by -$1400 C) Offer 1 is better by ~$5100 D) Offer 2 is better by ~$5100 E) Offer 2 is better by -$20 000 Answer: B 3=1(1+0.064 14. Sagheer received two offers for his property that he is selling. Offer 1 consists of $700 000 immediately and offer 2 consists of $500 000 now and $110,000 per annum for the next 2 years. If money earns 6% compounded semi-annually, which offer has a better economic advantage and by how much. Assume no inflation or discount? A) Offer 1 is better by -$1400 B) Offer 2 is better by -$1400 C) Offer 1 is better by ~$5100 D) Offer 2 is better by ~$5100 E) Offer 2 is better by -$20 000 Answer: B 3=1(1+0.064Step by Step Solution
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