Sagheer Received Two Offers for His Property That He Is

Multiple Choice

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 ~$1600
B) Offer 2 is better by ~$1600
C) Offer 1 is better by ~$5100
D) Offer 2 is better by ~$5100
E) Offer 2 is better by ~$20 000