How much money will need to invest today if it will be compounded bi-monthly with the rate of 6 % and will be withdrawn in 3 years? The amount of money after three years is ₱35425.
Compute the total interest of a money worth ₱2500 after 7 months if is based on simple interest with the rate of 11%.
Find the amount of ₱13450 after 5 years if it will be considered compounded semi annually at the rate of 9%.
PRINCIPAL
Let the amount to invest (P) = P
Let the accrued amount (A) = 35425
The annual rate of interest (R) = 0.06
Let the compounded times (n) = 6
Let time in years (t) =3
nt
(6*3)
18
Therefore
P = 29615.91336
The amount required for investment in order to get an accrued amount of 35425 from a compound interest at a rate of 6% over three years is approximately 29615.91.
TOTAL INTEREST
Let the amount invested (P) = 2500
Interest rate (R) =11%
Time (T) = 7 months
Simple Interest =
= 160.4166667
Total simple interest is approximately 160.42.
ACCRUED AMOUNT
Principal (P)= 13450
Interest rate (R) = 9%
compounded times (n) = 10
Time (t) = 5
Let time in years (t) =3
nt
(2*5)
10
Therefore
The total accrued amount with a principal of 13450 with an interest rate 0f 9% per year compounded semi annually over 5 years will be approximately 20887.44.
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