document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1188856>Question 1188856</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Upon reaching 60 years old, Mr. Fernandez was given <BR>\n" );
document.write( "the option by SSS to either (1) receive a lump sum of <BR>\n" );
document.write( "Php200,000.00  or  (2)  receive  a  monthly  pension  of <BR>\n" );
document.write( "Php10,000.00 for the next two years. If current rate of <BR>\n" );
document.write( "return for investments is at 8 %, compounded monthly, <BR>\n" );
document.write( "which option will be better for Mr. Fernandez?  Show <BR>\n" );
document.write( "your solution for your choice and explain. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #820043 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=820043\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> he could either receive 200,000 as a lump sum or he could receive a monthly pension of 10,000 for the next 2 years.\r<BR>\n" );
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document.write( "take 8% and divide it by 12 to get .6666666....% per month.<BR>\n" );
document.write( "that's 2/3 of a percent interest per month.\r<BR>\n" );
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document.write( "using the finance calculator at <a  rel=nofollow HREF= \"https://arachnoid.com/finance/index.html\" target = \"_blank\">https://arachnoid.com/finance/index.html</a>, i get the following:\r<BR>\n" );
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document.write( "if they give me 200,000 up front and i invest it at 8%  per year compounded  for 24 months, i would receive 9045.6 at the end of each month for the next 24 months.\r<BR>\n" );
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document.write( "since that's less than 10,000 at the end of each month, i'm better off taking the 10,000 at the end of each month for 24 months.\r<BR>\n" );
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document.write( "if they gave me 10,000 at the end of each month for the next 24 months, i would receive the equivalent of 221,105.43 up front.<BR>\n" );
document.write( "that's 21,105.43 more than i would have gotten with their 200,000 up front lump payment.\r<BR>\n" );
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document.write( "it is very clear from this analysis that mr. fernandez should take the 10,000 at the end of each month option.\r<BR>\n" );
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document.write( "here are the results of my analysis using the arachnoid financial calculator\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2021/121501.jpg\" >\r<BR>\n" );
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document.write( "inputs are everything except pmt.<BR>\n" );
document.write( "output is pmt.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2021/121502.jpg\" >\r<BR>\n" );
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document.write( "inputs are everything except pv.<BR>\n" );
document.write( "output is pv.\r<BR>\n" );
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document.write( "for both analyses, .....<BR>\n" );
document.write( "interest rate is 8% / 12 = .6666666.....% per month.<BR>\n" );
document.write( "payments are made at the end of each month. </SPAN>\n" );
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