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

(Last Updated On: January 9, 2020)

#### 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

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

Solution:

Show

### 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.)

Help Me Makes a Difference!

 P inoyBIX educates thousands of reviewers/students a day in preparation for their board examinations. Also provides professionals with materials for their lectures and practice exams. Help me go forward with the same spirit. “Will you make a small gift today via GCASH?” +63 966 459 6474 Option 1 : \$1 USD Option 2 : \$3 USD Option 3 : \$5 USD Option 4 : \$10 USD Option 5 : \$25 USD Option 6 : \$50 USD Option 7 : \$100 USD Option 8 : Other Amount