Answer to Question #314602 in Mechanical Engineering for Jhonny

Question

P500,000 was deposited at an interest of 6% compounded quarterly. Compute the compound interest after 4 years and 9 months.

Answer: P163,475.37

Answer 1

4 years 9 months = 19 quarters.

The interest per quarter = $\frac{0.06}{4}=0.015$

The total amount after 4 years 9 months:

$y=a(1+r)^t=500000\times(1+0.015)^{19}=663475.37$

The total interest = 663475.37 - 500000 = P163475.37

Answer: P163475.37