Question #311989

How much money will need to invest today if it will be compounded bi-monthly with the rate of 6 % and will be withdrawn in 3 years?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%.


1
Expert's answer
2022-03-16T10:16:23-0400

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

A=P(1+r/n)A= P(1+r/n)nt

35425=P(1+0.06/6)35425= P(1+0.06/6)(6*3)

35425=P(1+0.01)35425= P(1+0.01) 18

35425=P(1.196147476)35425= P(1.196147476)

Therefore P=(35425/1.196147476)P=(35425/1.196147476)

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 = PR100TP* ​ \frac{R}{100}*T

=250011100712= 2500* ​ \frac{11}{100}* \frac{7}{12}

= 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

A=P(1+r/n)A= P(1+r/n)nt

A=13450(1+0.09/2)A= 13450(1+0.09/2)(2*5)

A=13450(1+0.045)A= 13450(1+0.045) 10

A=13450(1.552969422)A= 13450(1.552969422)

Therefore A=20887.43872A=20887.43872

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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