Liam was offered by AMS bank and TML bank with the following conditions: AMS BANK offers him Php 88000 at the end of 2 years plus Php 20000 at the end of 4 years while TML bank offers Php 24000 at the end of each semi-annual for the next 4 years. Assume that the money is worth 5.9% compounded annually. What is the fair market value of each offer? Round off your answers in 2 decimal places. AMS Bank's offer Php 88000 at the end of 2 years Php 20000 at the end of 4 years Next TML Bank's offer Php 24000 semi annually for the next 4 years The present value of 88000 for 2 years from now is: Php The present value of 20000 for 4 years from now is: Php Fair Market Value (FMV) of AMS Bank Php Fair Market Value (FMV) of TML offer Php

Liam was offered by AMS bank and TML bank with the following conditions: AMS BANK offers him Php 88000 at the end of 2 years plus Php 20000 at the end of 4 years while TML bank offers Php 24000 at the end of each semi-annual for the next 4 years. Assume that the money is worth 5.9% compounded annually. What is the fair market value of each offer? Round off your answers in 2 decimal places. AMS Bank's offer Php 88000 at the end of 2 years Php 20000 at the end of 4 years Next TML Bank's offer Php 24000 semi annually for the next 4 years The present value of 88000 for 2 years from now is: Php The present value of 20000 for 4 years from now is: Php Fair Market Value (FMV) of AMS Bank Php Fair Market Value (FMV) of TML offer Php

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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