Answer to Question #248245 in Financial Math for marckevindumalagan

Question

you would like to save php 10,000 for to your debut birthday party.how much should you deposit in q sqvings account every end of the month for 3 years if the interest is at 0.12% compounded monthy?

Answer 1

Amount needed to be saved, A is 10000

Interest rate, r is 0.12% compounded monthly

Time, t is 3 years

Let the amount that needs to be deposited be P

So;

A$=$ P$[$ 1$+\frac{r}{n}]^{nt}$

P$[$ 1$+\frac{0.12}{1200}]^{12}\times^{3}$ $=$ 10000

P$[$ 1$+0.0001]^{36}$ $=$ 10000

1.0001$^{36}$ P$=$ 10000

1.003606P$=$ 10000

P is 9964.069

Answer is Php9964.06