Answer to Question #274090 in Financial Math for lods

Question #274090

Ryza borrows P 150,000. At what rate compounded bi – monthly will her interest be if she agrees to pay P10,000 more at the end of 2 years?

Expert's answer

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

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

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

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