Problem Statement: EE Board June 1990
On his 6th birthday a boy is left an inheritance. The inheritance will be paid in a lump sum of P10,000 on his 21st birthday. What is the present value of the inheritance as of the boy’s 6th birthday, if the interest is compounded annually? Assume i = 4%
- A. P6,500
- B. P8,600
- C. P5,500
- D. P7,500
The present value of the inheritance as of the boy’s 6th birthday is P5,500.
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