Question

A bank earns 3% interest per annum compounded monthly for an initial savings deposit of 100,000 pesos. Find the net value of the deposit after 3 quarters if the earning is subjected to a 21% tax.

Answer 1

The net value of the deposit is:

$NV = 100,000×(1 + 0.03×(1 - 0.21)/12)^9 = 101,791.61.$