Solve the following problems. Show your solutions to support your answer.
1. At what rate will ₱ 6,500 accumulate to ₱ 27,000 for 3 years and 6 months, if compounded every 5
months?
2. Accumulate ₱ 25,000 for 2 years and 5 months at 6 ½%, compounded every two months.
3. Briefly explain the difference between a “ 7% compounded monthly for a year” and a “7% simple
interest for a year.”
nt
1.
7.2
7.2 rt
2.
29/6
3.
Assuming principal = 1
nt
12
Compound interest
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