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

(Last Updated On: December 8, 2017)

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:

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

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

div.feedburnerFeedBlock ul li {background: #E2F0FD;
list-style-type: none;
margin:0 0 5px 0px;
padding:5px 5px 5px 10px !important;
border: 1px solid #0080ff;
border-radius:8px;
-moz-border-radius:8px;
-webkit-border-radius:8px;

}

div.feedburnerFeedBlock ul li:hover {
background:#ffffff;
}

div.feedburnerFeedBlock ul li a{
color:#ffffff;
text-decoration:none;
}

div.feedburnerFeedBlock ul li a:hover {
text-decoration: underline;
color: #000000;
}
div #creditfooter{
display: none;
}

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

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

Solution: How much is this lump sum if the cost of money is 14% compounded quarterly?
5 (100%) 1 vote

Add Comment

© 2014 PinoyBIX Engineering. © 2018 All Rights Reserved | How to Donate?
mcq in computer fundamentals
➡️ MCQ in Computer Fundamentals Series | ECE Board Exam
mcq in industrial electronics
➡️ MCQ in Industrial Electronics Series | ECE Board Exam
MCQ in Power Generators (Cells and Batteries) Part 5 | ECE Board Exam
➡️ MCQ in Power Generators, Sources, Principles, Applications Series | ECE Board Exam
mcq in electrical circuit
➡️ MCQ in Electrical Circuit Series | ECE Board Exam

Get FREE Review Course
in your inbox

Subscribe to our mailing list and get reviewers and updates to your email inbox.

Thank you for subscribing.

Something went wrong.