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.
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