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

(Last Updated On: January 9, 2020)

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:

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

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