Question

Ryza borrows Php150,000. At what rate compounded bi-monthly will her interest be if she agrees to pay Php10,000 more at the end of 2 years?

Answer 1

$FV=PV(1+r/6)^{2\cdot6}$

$(150000+10000)=150000(1+r/6)^{2\cdot6}$

rate:

$r=6((16/15)^{1/12}-1)=0.032=3.2\%$