Set B; Analyze and answer the following questions.

1.Jenny's father has offered her two proposals as follows:

Proposal 1: Receive P40,000 in 25 years. Proposal 2: Receive P3,800 today instead of receiving P40,000 in 25 years.

The money is discounted at 10% annually.

Required: Determine which proposal Jenny should accept.

2. Angel has invested in Commercial Bank Y a single amount of P300,000 at 9% interest compounded quarterly for 12 years. At the end of 12 years, Angel has withdrwan the proceeds of her investment and invested them in Commercial Bank B at 8% interest compounded semi-annually for another 10 years.

Required: Determine the value of investment at the end of 10 years.

REMINDER!!

In number 1, please show solution for comparison. Or anything! Since I am confused of what to chose because I saw this on coursehero too:

Feture Value (PV), ofberries lescum Illustration 15 Jenny has Invested Frog Fun.coo Invested at 16% compounded where ry. ratere vaby Compoundleg period refers to the perked of coment orgy of conversion is to principal during the post. If the campoending period is seraat the and if monthly. It is ma. mapused during the term of the investment. It is coraposed by mailplyire on The desire of the Fy.noe manual end of Year s which i che the beginning of Year a. The the beadswing of the pertadic interval, the some Future Valus of Aane PRESENT VALUE: SINGLE AMOUNT WV-A BLOG value usleg the Formula PRESENT VALUE: ANNUITY Whred Determine the present vilee of the s sears at the bedsaved rate of 19% cesp resent Value (PV) refers Tonsand asked of annulty refers to the pro Scanned with CamScanner8. Mr. Daddy's father has offered her two proposals as follows: Proposal 1: Receive P40,000 in 25 years. Proposal 2: Receive P3,800 today instead of receiving P40,000 in 25 years. Assuming the interest rate is 10% annually, which proposal should Mr. Daddy Ancero accept? ANSWER: Choose Proposal 2 Note: Using either PVLS or FVLS will yield the same decision. However, it is more proper to use PVLS since you are deciding as to which is more valuable today. Proposal 1: (11% + 1) 41,111 = ?0?07078 x,621.84 Proposal 2 = 3,800 Since 3,800 > 3,691.84, choose proposal 2