On the day his grandson was born, a man deposited to a trust company a sufficient amount of money so that the boy could receive five annual payments of P 10,000 each for his college tuition fees, starting with his 18th birthday. Interest at the rate of 12% per annum was to be paid on all amounts on deposit. There was also provisions that the grandson could select to withdraw no annual payments and received a single lump on his 25th birthday. The grandson choose this option. How much did the boy receive as the single payment?
On the day his grandson was born, a man deposited to a trust company a sufficient amount of money so that the boy could receive five annual payments of P 10,000 each for his college tuition fees, starting with his 18th birthday. Interest at the rate of 12% per annum was to be paid on all amounts on deposit. There was also provisions that the grandson could select to withdraw no annual payments and received a single lump on his 25th birthday. The grandson choose this option. How much did the boy receive as the single payment?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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On the day his grandson was born, a man deposited to a trust company a sufficient amount of money so that the boy could receive five annual payments of P 10,000 each for his college tuition fees, starting with his 18th birthday. Interest at the rate of 12% per annum was to be paid on all amounts on deposit. There was also provisions that the grandson could select to withdraw no annual payments and received a single lump on his 25th birthday. The grandson choose this option. How much did the boy receive as the single payment?
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