12. A man deposited a certain amount when his son was born, at a rate of 12% per annum, with the intention that his son can withdraw P10,000 per year for 5 years starting on the son's 18th birthday. However, the trust company offers the son an option, that he may not make withdrawals but he can withdraw the money as a lump sum on his 25th birthday, and the son selected the option. Find the amount deposited by the man and the amount withdrawn by the son.
12. A man deposited a certain amount when his son was born, at a rate of 12% per annum, with the intention that his son can withdraw P10,000 per year for 5 years starting on the son's 18th birthday. However, the trust company offers the son an option, that he may not make withdrawals but he can withdraw the money as a lump sum on his 25th birthday, and the son selected the option. Find the amount deposited by the man and the amount withdrawn by the son.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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