Question: A & B use the table of future values and present values for the factor. A. Jenny's father has offered her two proposals as follows:

 A & B use the table of future values and present values for the factor.

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

Proposal 1: Received ₱40,000 in 25 years.

Proposal 2: Receive ₱3,800 today instead of receiving ₱40,000 in 25 years.

The money is discounted at 10% per year.

Required: Determine which proposal Jenny must accept.

B. A commercial bank offers Princess an investment plan to receive $500,000 in 12 years. Money is worth a 10% quarterly discount.

Required: Determine the amount Princess must invest today.

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