Solution: How much is this lump sum if the cost of money is 14% compounded quarterly?

A man inherited a regular endowment of P100,000 every end of 3 months for 10 years. However, he may choose to get a single lump sum payment at the end of 4 years. How much is this lump sum of the cost of money is 14% compounded quarterly?

How much is this lump sum if the cost of money is 14% compounded quarterly?

Problem Statement: CE Board November 1996

A man inherited a regular endowment of P100,000 every end of 3 months for 10 years. However, he may choose to get a single lump sum payment at the end of 4 years. How much is this lump sum if the cost of money is 14% compounded quarterly?

  • A. P3,702,939.73
  • B. P3,607,562.16
  • C. P3,799,801.23
  • D. P3,676,590.12

Problem Answer:

The lump sum is equal to P3,702,939.73.

Solution:

Latest Problem Solving in Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)

More Questions in: Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)

Online Questions and Answers in Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)


Search! Type it and Hit Enter


We educate thousands of students a week in preparation for their licensure examinations. We provide professionals with materials for their lectures and practice exams. To help us go forward with the same spirit, contribution from your side will highly appreciated. Thank you in advance.


Post a Comment

Contact Form

Name

Email *

Message *

Powered by Blogger.
Javascript DisablePlease Enable Javascript To See All Widget
Real Time Web Analytics