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 P10,000 each for his college tuition fees, starting on his 18th birthday. Interest rate of 13.6% per annum was to be paid on all amounts on deposit. There was also a provision that the grandson could elect to withdraw no annual payments and receive a single lump sum amount on his 25th birthday. The grandson chose this option. 1. How much did the boy receive as the single payment? 2. How much did the grandfather deposit?
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 P10,000 each for his college tuition fees, starting on his 18th birthday. Interest rate of 13.6% per annum was to be paid on all amounts on deposit. There was also a provision that the grandson could elect to withdraw no annual payments and receive a single lump sum amount on his 25th birthday. The grandson chose this option. 1. How much did the boy receive as the single payment? 2. How much did the grandfather deposit?
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 24CE
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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 P10,000 each for his college tuition fees, starting on his 18th birthday. Interest rate of 13.6% per annum was to be paid on all amounts on deposit. There was also a provision that the grandson could elect to withdraw no annual payments and receive a single lump sum amount on his 25th birthday. The grandson chose this option.
1. How much did the boy receive as the single payment?
2. How much did the grandfather deposit?
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT